Interest Rates

3 hot tips from the refix lady

Sashi

1. Always have a target, know whats a fair rate and push for it. Since we are doing quite a few of these, we have a fair idea of what the competition will offer a client. If you want to...

Rates – Steady breeze in the city of sails

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The Reserve Bank of New Zealand had a few things to say as it held the rate at what seems to be a low point relative to our historical trend. The reason for a steady hand on the rudder? That pesky...

Are rates shooting up?

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So yeah not really, as is evidenced by the graph below. If anything they might be heading towards what they were 2 years ago. Remember 2 years ago when the housing market was in a frenzy, thats how high the...

RBNZ with good news

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The RBNZ pulled its gloves off and delivered the well expected interest rate cut, bringing the OCR down to its lowest level ever, 1.75%. The banks have passed none of this on to clients, in fact negotiated rates today were...

Interest rate drops – where will the next boom be?

OCR

As the banks are forced to slow down the growth in their lending with the new deposit rules for investors (40%) they will be keen to maintain their margins. Keeping the drop in OCR to themselves and not passing it...

Brexit impact on NZ interest rates

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Couple of positive outcomes from Brexit could be : 1. Lower interest rates – BOE has $250 bln on standby to ensure liquidity in the markets. Potential tightening of liquidity in the markets could be a good reason for Fed...

The risk ahead for our rate

Average advertised rate for big 4 banks

The RBNZ held the rates steady but are we approaching a cross road? There could be a future where a rate cut will be needed as much as a rate hike. House prices and our exchange rate were identified as...

OCR stays the same – what was said

The Reserve Bank today left the Official Cash Rate unchanged at 2.25 percent. It seems that the RBNZ felt that there is some fire in the belly of the NZ economy, supported by strong inward migration, tourism and the already...

Low OCR – whats next

The OCR was introduced in 1999 and the latest move by the RBNZ brings it to its lowest point ever. 2.25% after a drop of .25%. This is following a drop of 1% last year. Here is my brief rendition...

Interest rates move up and then down

Swap rates have been volatile which meant a roller coaster ride for those fixing during the Christmas period. We saw bank rates move up just before Christmas which spelled a rush to fix before the new year. However lately these...