Results: OCR
A global interest rate shock is underway
As a result of annual inflation rates surprising on the high side overseas, recent renewed increases in energy prices, and rising ...
A new 'least regrets' policy from the Reserve Bank of NZ
On May 25, the Reserve Bank of New Zealand told us that they have decided to implement a new “least regrets” policy which is compl...
Shorter fixed term mortgage rates preferred
I sometimes struggle to remain polite when journalists ask me if the rising rates environment means now is a good time to fix for ...
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.
Interest rate rises to continue this year
Welcome to my first fortnightly column on mortgage rate levels and prospects in New Zealand. At the start of 2022 we can see that all fixed interest rates have in fact risen quite firmly.
Monetary policy tightening already in place
Over nearly 3 years the OCR increased from 5.0% to 7.25%. But the 3-year fixed mortgage rate barely increased. Contrast that with the current situation of this rate rising 1.8% the past six months while the Reserve Bank’s cash rate has gone up only 0.5%.
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 reacted to sharp increases in their cost of funds.
