Interest Rates

[speights boy]

Another big drop in dairy prices overnight.
Now down 48% since February.
Significant drop in our dollar will equate to noticeable fuel price increase, which will flow on to many businesses and households.

[Eugene]

But there's simply no way to know mate.


I imagine this is for PPOR, not for investments right?

investments as well I think.
Last time we were with them we got the lowest rates, and the banker emailed me these new rates. So must be for investments.

[muppet]

And with a dropping dollar
petrol prices are going up.
$2.30.9/l soon methinks.

[Wayne]

^^ so the newspaper suggested

[speights boy]

Westpac and ANZ have lowered their milk payout forecasts to $4.80 / $4.85.
These will be levels were we see those who have sensibly used the boom to pay down debt quietly getting on with business.

Meanwhile, those who have been farming for capital gains by talking on huge debt to increase landholdings may be left a bit worried.

[Maccachic]

Westpac and ANZ have lowered their milk payout forecasts to $4.80 / $4.85.
These will be levels were we see those who have sensibly used the boom to pay down debt quietly getting on with business.

Meanwhile, those who have been farming for capital gains by talking on huge debt to increase landholdings may be left a bit worried.

Maybe some new subdivisions may pop up to realise some capital..

[speights boy]

Maybe some new subdivisions may pop up to realise some capital..

Nah.
Ditch the Dairy and Boost the Beef.

NZ meat shortage looms

Kiwis cooks have turned to Australia to keep the steaks sizzling but even our trans-Tasman neighbours will struggle as the voracious United States market has gobbled up global meat supply.

The start of the barbecue season coincided with weak local supply and Brian Everton from Cabernet Foods Limited said prices were set to soar.

www.stuff.co.nz/waikato-times/business/10558945/NZ-meat-shortage-looms

[PTILoveYou]

ANZ is about to change its internal servicing interest rate from 7.5% to 7.75% tomorrow.

Good luck getting a mortgage from now on, it's going to be a hell of a ride to get an approval.

Good job RBNZ for doing the dirty work behind the scenes.

[Wayne]

ANZ is about to change its internal servicing interest rate from 7.5% to 7.75% tomorrow.

Good luck getting a mortgage from now on, it's going to be a hell of a ride to get an approval.

Good job RBNZ for doing the dirty work behind the scenes.

What's an 'internal servicing interest rate'?

[PTILoveYou]

What's an 'internal servicing interest rate'?

I don't know the exact name for it, but it is used by the banks for calculating serviceability when assessing new lending applications.

[Wayne]

I don't know the exact name for it, but it is used by the banks for calculating serviceability when assessing new lending applications.

got ya.
Probably a good thing because interest rates will go up and people should be prepared for that.

[mrsaneperson]

got ya.
Probably a good thing because interest rates will go up and people should be prepared for that.

So you have a crystal ball? You must be doing exceptionally well then.

[Wayne]

So you have a crystal ball? You must be doing exceptionally well then.

Oh for goodness sake!
Is it what I posted or that fact that I posted?

They will go up.
Maybe tomorrow (unlikely), maybe next year or the year after - I don't know when.
But they won't stay at historic lows forever.
People need to be prepared for it and if the banks feel that they need to stress test an individual when they apply for a loan
(by using a higher interest rate) then they are probably doing well by the individual.

No doubt, when they proverbial hits the fan, there will be people complaining that the bank should have known they couldn't afford a higher interest rate and it is the banks fault they can't pay.
Happened previously and will happen again.
I don't think the banks do this sort of thing just to piss people off!

As for me doing exceptionally well - I get by but am, at times, nervous about what to do next.
Cautious, nervous and decisive.
Is it possible to do all 3 at the same time?
It is good to have a long term view but it is the short term you have to get over first.

I hope things are equally good with you mrsaneperson

[PTILoveYou]

got ya.
Probably a good thing because interest rates will go up and people should be prepared for that.

Well the thing is I don't see why it should.

If the RBNZ raises the interest rates, ie affecting short term interest rate, where does this extra revenue to the banks go??

Does RBNZ get a cut? If not, then all it benefit is the banks, and the common folks suffer...

[Wayne]

Well the thing is I don't see why it should.

If the RBNZ raises the interest rates, ie affecting short term interest rate, where does this extra revenue to the banks go??

Does RBNZ get a cut? If not, then all it benefit is the banks, and the common folks suffer...

The RB doesn't get a cut!
It is more the long term rates you need to worry about and that will be driven from overseas.
Rates banks charge should be driven by the costs to them to borrow money and the margin they'd like over that (profit).
Tempered by competition and retaining market share.