Fixed rate hikes reflect market expectations
Mortgage interest rates have now risen by between 1.3% and 1.8% from where they were less than six months ago as banks have reacte...
High inflation and low unemployment, mean high interest rates
The Reserve Bank has so far raised its official cash rate by a small 0.25% yet bank fixed mortgage rates across the 1–5-year terms...
Strong growth is a key factor driving higher interest rates
The bounceback in economic activity in New Zealand since the first nationwide lockdown last year has been so strong that the unemployment rate has fallen back to the 4% level it was at when we entered that March – May lockdown.
Rate rises delayed but with upside risk
Borrowers could reasonably expect higher rates at their peaks, but not necessarily a faster speed of increase. Our central bank has an established long-term record of too often tightening monetary policy too slowly.
Mortgage rates are going up
On Wednesday 18 August the Reserve Bank will review the record low 0.25% official cash rate set in place back in March 2020 when we were heading into the economic and health unknown
Monetary policy tightening soon
Things have changed a bit since my last column discussing interest rates a couple of weeks ago. The state of the pandemic has stalled the growth projections for many economies and how quickly interest rates will go up. But what's in store for New Zealand?