Interest Rates

[Equilibrium]

RBNZ is talking about breaking the link between OCR and the interest rate, so I think that will be a very interesting move...

ANZ in Australia has done it, so it's gonna spread to rest of the banks soon.

If this happens, RBNZ will have no tools to slow down a bull market, ie raising OCR to dampen demand for property, similar to 2006-07.

Even in 2006-2007 banks were securing long term funds offshore at low rates compared to the variable rate quoted at the time thus borrowers would just take fixed rates to circumvent higher floating rates and RBNZ controls.

[eri]

the impossible balance

encourage saving

and punish savers

ONE of the most remarkable features of the modern economy is that interest rates are negative in real (ie, after inflation) terms and are expected to remain so.

Central banks attempt to affect this price by setting “base” rates (the term varies from country to country) at which they will supply liquidity to banks.

The aim of these policies is to discourage saving (and boost consumer demand) and to encourage business borrowing (and boost employment). It is a sign of the weakness of the global economy that central banks have forced nominal interest rates to their lowest levels in history.

Pension liabilities are linked to bond yields. As yields fall, the present value of future liabilities rises. The Pension Protection Fund recently reported that the
deficit of British pension funds has risen thirteenfold from £24.5 billion ($39 billion) to £312 billion over the past year.
That requires firms to divert more money into their schemes—money that might otherwise have been available to finance business expansion.

There will be something wrong if, in five years’ time, real interest rates are still negative.
Capitalism depends on giving a positive return to suppliers of capital.
That said, it would be a mistake to argue that central banks should attempt to raise interest rates soon.
The European Central Bank’s decision to tighten monetary policy last year looks an even bigger error in retrospect than it did at the time.
Savers will have to keep suffering.


http://www.economist.com/node/21557758

[Equilibrium]

Kiwibank - "The Block NZ" special rate - 4.99% fixed for 6 months with 30% equity

Let the good times roll. To support Kiwibank involvement with the new TV series "The Block NZ", take out a home loan with Kiwibank you'll receive $2,000 worth of Dulux premium paint to spruce up your home, or $1,000 towards insurance cover arranged by Kiwibank. Plus you'll go into the draw to win a fantastic $15,000 colour makeover for your home thanks to Dulux and Master Painters. Limited time offer though! Visit the Kiwibank website for terms & conditions.

[Shane D]

The Kiwibank rates are not that special @ 4.99% for 6 months. I just negotiated 1yr @ 4.75% and 2yrs @ 4.99% with ANZ also with $2,000 thrown in to what I please with.

I guess the only Plus of the above Kwibank promotion is the slim chance of winning a $15,000 paint makeover.

I am not much of a gambling man ...so I would go for the certainly of lower interest rates for longer terms.

ASB is also starting to adverting a 5.99% rates for 5yrs. That is agreat 5yr rate.

Shane

[AMR]

I see ASB now have a 5 yr rate of 5.99%. Has anyone managed to negotiate much off this one?

[Davo36]

Shane is that new lending or refinanced lending?

[Equilibrium]

I would be very surprised, there must be nothing in it for ASB at that level.

[muppet]

It is only an Olympic Games special so won't last long.

[Shane D]

Shane is that new lending or refinanced lending?

Davo, that is refinanced lending. I switched from NZ Homeloans to ANZ.

Shane

[jimO]

having just watched episode 1 of The Block, one word describes it for me.......shite

[Davo36]

Davo, that is refinanced lending. I switched from NZ Homeloans to ANZ.

Shane

Hmm, cool, I'm with ANZ, trying to refinance. It's proving to be tricky to do.

May I ask what amounts roughly?

[drelly]

This is the sort of thing that will eventually push our rates up.

Billions of pounds of emergency cash are expected to be pumped into the UK economy.

The Bank of England's monetary policy committee is widely predicted to boost its quantitative easing programme by a further £50 billion ($97.15 billion) to £375 billion at its latest monthly meeting overnight.

read more: http://www.nzherald.co.nz/business/n...ectid=10817637

[PC]

Saw bits of the first episode last night.
Wonder who they got in to trash the places?
Solo Mums + kids or Nearby HNZ tenants perhaps?

[Perry]

Emergency Cash? Or Emergency Trash?

This is the sort of thing that will eventually push our rates up.

Billions of pounds of emergency cash are expected to be pumped into the UK economy.
The Bank of England's monetary policy committee is widely predicted to boost its
quantitative easing programme by a further £50 billion ($97.15 billion) to £375 billion
at its latest monthly meeting overnight.

Fire up the printing presses!
Deflate the value of the pound!
Wipe out the value of peoples savings!
Keep up inflationary pressures!
Tally-ho, chocks away!

Real responsible banking at its best. Call in the Barclay's CEO for more tips.

[eri]

partners, boyfriends cause the biggest damage

poor impulse control

angry that they are unemployed, can't see a future past the next dole check, worried about the pressure to work

and regardless of the fact that they haven't been able to raise themselves

they are expected to raise children not their own

who don't respect them or even want them in competition for their mother's time

they stuff it all down under layers of booze and drugs

until 1 night it all flies out

putting holes in walls

kicking in doors

punching out windows until the blood flows and the anger drains

then congratulate themselves with

"the important thing is that no one got hurt badly, it could have been much worse

time to move on

put the past behind them

find another town, another solo-mum, another case officer

and to stay out of jail

no one wants that"

http://www.stuff.co.nz/national/crim...o-nark-on-thug