Further interest rate falls not on the cards
ANZ economists say the bulk of mortgage interest rates falls has likely ended, barring any major surprises.
Chief economist Sharon Zollner says the focus for many home owners over the coming months will be on when to extend theirmortgage term, knowing that once the RBNZ finishes easing, financial markets will inevitably start to ask when the OCR might rise again as the economy responds to stimulus.
“For those who need to fix today, it’s hard to look past the two-year rate, which is already close to where we see it bottoming out.”
She says if borrowers have the luxury of waiting a little longer, it could make sense to hear what the RBNZ has to say late this month at its next OCR review and Monetary Policy Statement and make a plan after that, as the central bank may signal an appetite for deeper cuts, or even deliver a bigger cut if things deteriorate between now and then.
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