Interest Rates

[Austrokiwi]

Well that's interesting: What does Mr Wheeler see that most of the other Central bank heads in the OECD don't see? The euro zone is still slowing the US may well step back for the cliff edge but that doesn't mean the economy there is going to boom.

[TheLiberalLeft]

And the strong currency is a "head wind". A head wind??? FFS.

And what happens after the speech? The currency spikes stronger still.

This guy hasn't a clue when it comes to exporters and the pain they're suffering.

[speights boy]

What does Mr Wheeler see that most of the other Central bank heads in the OECD don't see?

Even with the RBA cut this week, we are still 50 basis points lower than Aus.

And what happens after the speech? The currency spikes stronger still.

The AUD increased half a cent versus the USD immediately following their cut on tuesday

[Austrokiwi]

IMHO the Aussi and NZ Dollars will remain high while Australasian interest rates remain above the US and European inflation rates.

[Jumpin]

Well that's interesting: What does Mr Wheeler see that most of the other Central bank heads in the OECD don't see? The euro zone is still slowing the US may well step back for the cliff edge but that doesn't mean the economy there is going to boom.

I think Mr Wheeler is paranoid that the Chch rebuild will cause significant inflation in the near term.

Interestingly there are no jobs available a Kiwi pay rates. Lot of cheap imported labour, according to builder mate

[Perry]

Doors Closing On Lowest Mortgage Deals
06/12/2012

Interest rates are still at historic lows, but the window of
opportunity for homeowners looking to lock in a juicy mortgage deal
may be beginning to close. This morning the Reserve Bank left the
official cash rate - which strongly influences interest rates offered
by banks - unchanged at its record low of 2.5 per cent. New Reserve
Bank governor Graeme Wheeler noted that lower funding costs for banks
and increased competition had seen mortgage rates fall.

The floating mortgage rate for most major banks sits around 5.75 per
cent, currently undercut by cheaper fixed terms of one to two years.
Westpac chief economist Dominick Stephens said the central bank had
begun to acknowledge the risk of the heated housing market. "We do
think house prices will keep rising pretty aggressively in 2013, and
therefore our view is that the Reserve Bank will have to begin
increasing the OCR from September."

[JABlog]

Doors Closing On Lowest Mortgage Deals
06/12/2012

So the banks want your money where they receive best margins

Interesting to note that same article contains some very contridictory comments..

[Simmo]

So who's negotiated rates significantly below 5% of late?

Have some coming off fixed and would be interested to hear if anyone has got much off the advertised (some banks) short term fixed 4.95%...

[brokerman]

So who's negotiated rates significantly below 5% of late?

Have some coming off fixed and would be interested to hear if anyone has got much off the advertised (some banks) short term fixed 4.95%...

If you looking for two year money then lock in sooner rather than later, most Banks starting to go over five now. Five year money at sub 6% is pretty attractive too.

[Simmo]

Yeah I was thinking two year would be the go, this lending is with WP so I see 4.95 is stilll on offer, so you think I'm unlikely to do better than that?

[SwissKiwi]

If you looking for two year money then lock in sooner rather than later, most Banks starting to go over five now. Five year money at sub 6% is pretty attractive too.

I've been waiting and pushing for 5yrs @5.5% but no luck yet.

What's the best seen for 5yr term?

[brokerman]

Yeah I was thinking two year would be the go, this lending is with WP so I see 4.95 is stilll on offer, so you think I'm unlikely to do better than that?

4.95% is pretty good, have heard of a couple of people getting 4.85% but these will be the exception

[Simmo]

4.95% is pretty good, have heard of a couple of people getting 4.85% but these will be the exception

Great, thanks for your input!

[drelly]

The US have just put through another increase to their quantitative easing to the tune of $45B a month. That takes it to a massive $85B a month. Eventually we have to see some serious inflation but for the same reason the US dollar should drop further against the NZD. What the hell is going to happen???

[Hound]

I had been floating & have just put everything at 4.95%, most of it for 12 months. Dunno where it will go now, but it depends on which term the banks decide to compete on. I no longer bank with Kiwibank, but they still seem to lead the way. Which benefits everyone.