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In fact it has the power. Reserve Bank can require banks to hold more capital for loans to certain groups of customers, such as residential property investors. More capital = higher interest rates to these customers.
In fact it has no power. Power to require more capital to be held is not the same as power to require charging higher rates. Banks can easily (and some will I hope) absorb the extra cost to get the investors' business.
True, power to require more capital is different from power to charge higher interest rates.
Nevertheless the impact is direct. Some banks may absorb costs for some (lucky!) investors, but in general interest rates for average investor will increase. RBNZ knows that and was talking about this option quite for some time.
I was told that by Westpac yesterday when I approached them about refinancing.
Thats odd
The westpac said the opposite to me
Commercial interest rate are actually less than residential
Last month i was quoted 4pc floating for commercial
Thats odd
The westpac said the opposite to me
Commercial interest rate are actually less than residential
Last month i was quoted 4pc floating for commercial
Good to hear ...was talking with Westpac business banker today ,,getting idea how much I can borrow for commercial purchase
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