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  • Originally posted by spurner View Post
    I'm inclined to agree. I'm seriously considering fixing all my loans shortly after the next OCR announcement, for long periods. General consensus now is that any future drops in long term rates are going to be quite small.
    I'm definitely keeping a close eye on the rates after the next announcement also. I still think there is some room for them to drop but probably not a significant amount through the year.

    Comment


    • My pick on the next OCR - 100 bp drop which up to 80% will be passed onto the 6 mth, 1 & 2 year rates.

      There might be a "shave" taken off the 3, 4 & 5 year rates.

      Re-read this

      http://www.propertytalk.com/forum/sh...44&postcount=2

      and

      http://www.propertytalk.com/forum/sh...47&postcount=3
      Patience is a virtue.

      Comment


      • Out of the blue we received a letter from our bank on Friday............our floating rate was dropped to 3.375%. The ECB does not meet for another couple of weeks. Our Bank is part of the Unicredit group and with Soem other banks is in talks with the Austrian and Italian Governments. A few weeks ago these same banks (ours included) were being slammed for not passing on the full reductions in the base lending rate. Now they are compensating fast................!!!!! In compaison in the past it took them 4-8 weeks to pass on ECB rate cuts!!!


        As Badger said low interest rates indicate a sick economy.......But NZs aren't low yet. Once they start heading to 3% then they are low. NZ has been out of Sync with many countries for a long time.
        Last edited by Austrokiwi; 23-02-2009, 09:13 AM. Reason: typo
        The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

        Comment


        • Forgot to add that this is the second rate drop we have received in February
          The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

          Comment


          • The bank(s) that lead the way with lower long term rates, will be getting plenty of new long term business.
            Looks like they are having trouble coming to grips with this concept. The way it is now there is no real competition. Six months? so bloody what.

            Comment


            • Bernards comments

              http://www.interest.co.nz/ratesblog/...ithin-a-month/

              Jabs

              Comment


              • Originally posted by Hound View Post
                The bank(s) that lead the way with lower long term rates, will be getting plenty of new long term business.
                Looks like they are having trouble coming to grips with this concept. The way it is now there is no real competition. Six months? so bloody what.

                It is really worth reading Bernards Article as posted by jabroni1.

                Here in Europe Fixed mortgage rates have ( at least for the last 8 years) been higher than variable. Short term funding is cheaper than long term!!!
                The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

                Comment


                • I wonder who is going to be the first to break the 5% barrier i.e do 4.99%

                  Comment


                  • Do keep up, Terry!!

                    BNZ - six month fixed @ 4.99% (subject to taking two "Box" other products)
                    Patience is a virtue.

                    Comment


                    • Originally posted by Austrokiwi View Post
                      It is really worth reading Bernards Article as posted by jabroni1.

                      Here in Europe Fixed mortgage rates have ( at least for the last 8 years) been higher than variable. Short term funding is cheaper than long term!!!
                      He has a good point especially when the benchmark has been set with recent bond issues having a 2.5 to 4% margin for aa rated bonds.

                      Comment


                      • Originally posted by Jabroni01 View Post
                        Hi Jabs.

                        Don't think Bernard is ahead of the game with these comments. They were picked a while ago by Austro (I think).

                        As mentioned earlier in this thread, Tony Alexander saw 5 year rates bottoming out at 5.5% (not sure if he still picks this). This makes pretty good sense to me.

                        If I was a banker in uncertain times with talk of potentially uncharted inflation on the cards, would I lend out at less than 5.5% over 5 years? Commit to debt (largely foreign) to feed a 5.5% appetite. My layman's guess is not.
                        Last edited by watchful; 24-02-2009, 05:36 PM. Reason: Bad English :)

                        Comment


                        • Originally posted by essence View Post
                          Do keep up, Terry!!

                          BNZ - six month fixed @ 4.99% (subject to taking two "Box" other products)
                          lol.... check the time of that puppy it was at least 2 hours before they announced it or maybe 2 minutes.... bugger....

                          Comment


                          • In light of RBA holding rates, I'm going to boldly predict the RBNZ will hold as well in the March 09 review.

                            If this eventuates, where can I collect my chocolate fish?

                            Comment


                            • I'll send you an IOU.
                              "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

                              Comment


                              • The RBA decision was a great way to choke on my coffee GRRRRRR! Got up this morning made the coffee logged on to catch up with what was happening, and ended up spluttering. Like SB I would half expect that the RB will follow Australias lead except Bollard has been raising expectations of a cut......my best guess would be that the possibility of only a .25 cut has just increased!
                                The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

                                Comment

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