Will "The Banks" offer lower one year rates closer to OCR

[iwik]

Westpac who I bank with currently offering one year fixed at 5.09%

With the OCR predicted to rise next year do you predict the banks will offer lower one year rates a week
or two out from the next OCR release ?


(I'm looking to sell next year otherwise would have done my past practice of fixing for 5 years)

[Austrokiwi]

Westpac who I bank with currently offering one year fixed at 5.09%

With the OCR predicted to rise next year do you predict the banks will offer lower one year rates a week
or two out from the next OCR release ?

(I'm looking to sell next year otherwise would have done my past practice of fixing for 5 years)

Looking in at NZ from Europe I find it intriguing that NZ based commentators and media are picking interest rates to rise next year. I must be missing something as from a European perspective interest rate rises, without a major unexpected turnaround, are likely to remain the same till next year and then commentators are suggesting the ECB may actually cut the base rate again. China over this year is facing its own potential internal debt crisis, and the recent comments from the Fed chairman suggest the US will be very slow to raise the base rates for fear of killing off the currently tepid recovery. I therefore assume NZ is facing some other factor ( bank credit rating downgrades, or is it a gvt credit down grade?). If there are no such other factors then I see the reserve bank left with little choice but to keep rates low; any move to raise the NZ base interest rate differential between Europe and the US would tend to push the NZ dollar higher and would seriously hobble NZ exporters! Could it be commentators and politicians are trying to "talk fear" to control the market?

[iwik]

"Could it be commentators and politicians are trying to "talk fear" to control the market?"

Could very well be .....

Inflation from spending after internal borrowing could be another ball they keeping their eye on ...

[Maccachic]

Ask Westpac for 4.89 for one year.