Results: New Zealand Economy
Are Kiwis set to head back over the ditch?
Last week the Reserve Bank did something they have not done for a long time. In their regular Monetary Policy Statement they publi...
Mortgage interest rates are set to rise
In New Zealand the current general expectation is that this removal of the sugar bowl will commence in the second half of next yea...
Two triggers for rate rises
At some stage banks will raise their fixed lending rates to avoid locking in lending at low margins for a number of years. There a...
Fixed rate rises delayed for now
A couple of weeks ago, discussions centred around increases in bank borrowing costs and rapidly decreasing margins on fixed rate mortgage lending. The chances of that have now decreased, but rate rises are still on the cards before the middle of the year.
Fixed mortgage interest rates on a timer
Wholesale interest rates in NZ fell to record low levels around October last year. Since then however, we have seen a radical shift in expectations for growth, inflation, and monetary policy settings around the world on the back of three key developments.
OCR remains unchanged, RBNZ to keep monetary policy steady
There's no reason for strongly believing that we face a future of sustained high inflation which will require an interest rate crunch. But borrowers should pay attention to the upside risks and the extreme uncertainty regarding how far and fast rates rise.
New borrowers will pay more
If borrowers are approaching taking on a new mortgage with a view (conscious or not) that rates tend to fall over time and debt management is made easy, they had best think again.
