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Mortgage Rates Commentary

Westpac makes substantial change

Wednesday 23rd of November 2016

Westpac has made a substantial change to its interest rate forecasts in its just released Economic Overview.  Previously it said that a slowing economy would warrant further OCR cuts into 2018 and 2019.

"However, with our economic forecasts now evolving towards stronger growth for longer, we have decided to remove those additional cuts from the forecast. We still anticipate a slower pace of growth towards the end of the decade, as the Canterbury quake rebuild winds down and the construction pulse elsewhere peaks.

"And without that additional easing, our forecasts suggest that inflation is more likely to linger in the lower half of the inflation target. But that in itself would probably not be enough to spur the RBNZ back into action."

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Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
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Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
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