Interest Rates

[muppet]

Hi Guys

The battle continues:

ASB Bank firing both barrels in fixed mortgage price war

MONDAY , 15 NOVEMBER 2004


ASB Bank is firing both barrels at other big banks in the fixed mortgage price war, offering 6.95 per cent for two years, but the Bank of New Zealand is firing back with a new 6.9 per cent rate.

ASB is also heavily undercutting all the big banks on the one-year fixed term, offering 6.95 per cent, which banking sources said was likely to be at paper-thin profit margins.

The ASB's one-year fixed rate is well below any other big bank, and a whopping discount to the 7.75 per cent for one-year fixed being charged by ANZ Bank and Westpac.

ASB trimmed its two-year fixed term rate to 6.95 per cent late last week, down from 7.75 per cent a few weeks ago, but BNZ shot back yesterday, dropping its two-year rate to 6.9 per cent.

BNZ is not shifting down on its one-year fixed rate, saying it will concentrate on its two-year fixed deal, which it said customers preferred.

Bank sources said ASB may have lowered its rates in response to BNZ's aggressive pricing on the two-year fixed term. ASB could actually be losing some customers as their fixed terms came up for renewal, they said.

In August, ASB said it was taking market share from the other banks, lifting its home loans by $4.5 billion.

BNZ's business development general manager Andrew Whitechurch said yesterday the bank was keeping to its promise of "unbeatable" two-year fixed term mortgages till the middle of December.

The two-year rate was a "pretty good deal" compared with floating mortgage rates at 8.75 per cent, he said.

Regards

[muppet]

Hi Guys

Wow the big banks are running around like headless chickens.

They have no idea what is going to happen to interest rates at the moment and so they all have almost identical rates around 7.6% from 6mths to 5 yrs.
Except for Westpac which is leading the bunch at 7.75% for 5yrs.

But their floating rates are floating very high in the water. There has been no changes for quite awhile.

Check out the latest rates on Phil's Goodreturns site.

Regards

[muppet]

Hi Guys

BNZ appear to have overnight put all their interest rates up except the 2 yr rate and their floating rate.
All fixed rates are now 7.70%.

Regards

[Shoshin]

Hi

My Banker at westpac has said that she thinks they will have a interest rate rise in early march and then later in the year it will drop back, will be interesting.

[muppet]

Hi Guys

ASB have put their 2, 3, 4, and 5 yr fixed rates up.

2yr to 7.7% and the rest to 7.8%.

Regards

[muppet]

Hi Guys

Westpac have put up their 3, 4 and 5 yr fixed rates to 7.8% tonight.

Regards

[muppet]

Hi Guys

ANZ have now raised all their fixed rates to 7.8%.

Regards

[AustinWong]

I wonder when the Commerce Comission will step in to check out the regular and often coincidental rise of interste rates by banks nationwide.

[pimpit]

Interest rate will go up in the next couple of years...I had a look at the plot of nz interest rates for last 50 years.

I believe it will hit the 8%-9% mark. Fixing them now is a good idea.

[Julian]

pimpit,

Love to know where you got your crystal ball from. Personally I stick with the astrologists and numerologists, and failing that the tooth fairy is pretty good for a prediction.

Julian.

[Julian]

pimpit
Apologies for my sarcasm, especially to a new contributer. I understand it is purported to be the lowest form of wit. It's just that I don't think anyone can predict interest rate movements with any degree of accuracy any more than they can currency movements. There are too many variables and combinations of variables.
Julian

[muppet]

Hi Julian

You said:

tooth fairy is pretty good for a prediction

That wouldn't be Dr Cullen in drag would it?

Regards

[pimpit]

pimpit
Apologies for my sarcasm, especially to a new contributer. I understand it is purported to be the lowest form of wit. It's just that I don't think anyone can predict interest rate movements with any degree of accuracy any more than they can currency movements. There are too many variables and combinations of variables.
Julian

Apologies for my sarcasm, but I don’t think you are in a position to judge my knowledge. Interest rate can be predicted accurately for short term 1-2 years.

I have done accurate models, and the models have been accurate for the last 3 years.

[Julian]

pimpit,

Quite right - I am in no position to judge your knowledge. It's just that my banks, with all their resources, have got it wrong on a number of times - in fact, it seems they have got it wrong as often as they have got it right, which implies I might just as well flip a coin.

If you are willing to offer a guarantee (that covers the costs of any losses for those that act on your advice) you could be on to a winner with your predictions.

Best wishes,
Julian.

[muppet]

Hi Guys

Westpac is first out of the blocks, again.

Their floating rate now starts at 9.05%.

Regards