From Squirrel's CEO John Bolton:
"We have an OCR of 0.25% and banks still paying 2.50% on a term deposit. That’s why we haven’t seen much of a fall in the fixed housing rates. The one-year mortgage rate dropped from 3.29% to 3.05% and maybe we will see mainstream banks as low as 2.95% in the near future.
That is as low as rates will go
Lower margins and higher credit losses will put a floor under any further rate competition. I would argue that banks are focusing less on competition and growth, and their story will now be centred around credit management and margin protection."
