Record low rates will one day end
Let’s have a look back at the year and what has happened in the area of interest rates, and where things are likely to go.
Structural falls in interest rates are almost over
You might think that as an economist I tell people what I think is going to happen. There are certainly elements of that, and gene...
Is New Zealand's OCR heading below zero?
In recent months there’s been a good deal of speculation that New Zealand's Office Cash Rate (OCR) might drop below zero next year. It's already sitting at 0.25% and it’s expected to move downwards to stimulate activity in the economy.
Printing money and negative interest rates
A few people in recent months have been asking whether the printing of money will propel higher inflation which will lead to interest rates also surging higher. Answering their queries is actually quite easy.
Banks yet to come to the party
The RBNZ recently removed loan-to-value ratio rules, but banks are yet to pass this on to home buyers. In fact, borrowers are having to jump through more hoops than usual.
Big banks join the rate war, dropping below 3%
As expected, the big banks are starting to drop their rates further to reach below 3%, and today ASB announced its two-year fixed rate of 2.99% while Kiwibank introduced a one-year fixed rate of 2.99%.