Borrowing costs to banks unusually high at the moment
One of the more interesting things in the wholesale money markets at the moment is that swap rates have risen so far they imply an...
Monetary policy to tighten before it loosens again
the fixed rate costs to banks of borrowing money to lend at fixed interest rates have soared in recent weeks. That is why we are s...
Interest rates not just rising in New Zealand
In the United States this week we have seen the Federal Reserve Board raise their key interest rate by 0.25% with a target range now of 0.25% to 0.5%.
Inflation outlook gets worse, and better
It looks like inflation in New Zealand this year is going to be perhaps 1% higher than thought just a few weeks ago as a result of Russia’s invasion of Ukraine.
Where will mortgage rates peak?
What is it that borrowers should expect to see happen to their mortgage rates over the next few years? In particular, what does it mean now that the Reserve Bank have lifted their pick for how high their OCR goes from 2.5% to just under 3.4%?
Monetary policy tightening all around the world
It seems like we cannot get through a week at the moment without some fresh news suggesting inflation around the world will be more problematic than thought, and that interest rates will need to rise earlier and potentially higher than previously believed.