Interest Rates

[Bluekiwi]

Unless I have missed the signals and tempo of the RB, I think there is zero chance of retrosepctive rules, they have been signalling ahead everything they do.

Plus I am intrigued how they will do this new legislation, considering small business use loans secured against personal / rental property.

[speights boy]

The economists said the changes would be retrospective, covering the stock of mortgages as opposed to the flow.

"...But this could open a can of worms too. A lot of borrowing is locked in already at fixed rates, which is a legal contract between borrower and lender.

"Arguably we could see a rush of new fixing by borrowers to beat the new regime.

But if it is to truly be retrospective, one wonders what legal issues will be raised.
The RBNZ has proposed a nine month transition period, which we guess is intended to help iron out these issues."

http://www.interest.co.nz/property/74416/anz-economists-see-planned-new-rbnz-housing-investment-rules-affecting-huge-number-pr

[Bluekiwi]

You go away for 4 days and the sky falls in

That 10 year rate is looking better by the hour.

Any hints on when this is coming in, and what it will be.

Note: we have to be carefuly on people with vested interest telling us what they think will happen (what they want to happen).
As apposed to the people who do know what is going on, telling us what might be, from an educated and informed position.
I have found the media struggle to comphrehend the suble difference.

[Bluekiwi]

http://www.interest.co.nz/property/7...huge-number-pr

Okay read that, and to my mind the comments are banking froth to the Reserve Bank not to go in too hard !!!
I see Bernard is jumping in on the bandwagon as usual.

But I repeat what I have said in the past.
John key is no johnny good mates with property investors, under his stewardship more has been done against property investors than 200 years of past labour governments.
I hate to say it but property investors really should be voting labour.

[quebec]

I have two loans, $120K and $370K. $120K expires 25th March and $370K @ 5.1% on 29th May. I am re fixing $120K, bank offering same rate for 1 year and 2 years. Should I break the $370K too which is costing $300 and fix everything together for 1 year or 2 year. or should I just re fix $120K now for 1 year and wait to see what happens end of May?
I was thinking of re fixing the $120K now for 1 year and then wait to see what happens end of May.
Thanks

[donthatetheplayer]

Quebec. Float and wait. Don't make my mistake and fix too early.

[Bob Kane]

Bankers aren't stupid.
They are offering good long term rates now because they think rates are dropping further in the future.
No need to rush in and fix just now.

[speights boy]

As expected ...OCR held steady.

[PTILoveYou]

"The Reserve Bank of New Zealand has completely removed any suggestion of higher interest rates in its March Quarter Monetary Policy Statement, forecasting the 90 day bill rate would remain unchanged at 3.7% until March 2017."


Wow till March 2017!!! That is a very strong message that interest rates will stay low for a long long time!

No wonder SBS is flashing out 4.99% for 5 years.

More cheaper rates to follow!

[speights boy]

Wow till March 2017!!! That is a very strong message that interest rates will stay low for a long long time!

Yes, that may well be the case for owner occupiers.

[PTILoveYou]

"The Reserve Bank also forecast that annual CPI inflation would fall in the March quarter to 0.0% and remain below the bottom of the Reserve Bank's target range of 1-3% until March 2016. "

Expect an OCR cut sometime this year.

This is deflation territory!

[Leftette]

I noted the usual hollow words regarding the high NZD.

[drelly]

"The Reserve Bank also forecast that annual CPI inflation would fall in the March quarter to 0.0% and remain below the bottom of the Reserve Bank's target range of 1-3% until March 2016. "

Expect an OCR cut sometime this year.

This is deflation territory!

Fortunately, there are many bureaucrats making sure that there is a never-ending raft of new legislation to keep housing ever-more expensive to prop up house prices.

[PTILoveYou]

Fortunately, there are many bureaucrats making sure that there is a never-ending raft of new legislation to keep housing ever-more expensive to prop up house prices.

Long may that continue too =)

[muppet]

NZ holds but!!!!!!!!!

Rate cuts: 24 so far and there's more to come

Dhara Ranasinghe | @DharaCNBC
6 Hours AgoCNBC.com

An interest rate cut from South Korea Thursday takes the number of central banks that have stepped up their monetary easing this year to 24 and that number is likely to rise, analysts say.

South Korea's decision to cut its key rate by 25 basis points to a record low of 1.75 percent follows a rate cut by Thailand's central bank on Wednesday and easing by central banks in China, India and Poland since March began.
Read More Bank of Korea joins the global easing spree

Russia and Malaysia are among the countries that economists say could join the growing list of central banks that have slashed borrowing costs since the start of the year.

Read more at

http://www.cnbc.com/id/102499561