Some Quotes - One Year On
Homeowners Warned On Interest Rates
NZPA
05/01/2011
Bank Forecasts Recovery Will Be A Hard Slog
James Weir - The Dominion Post
05/01/2011
Homeowners Warned On Interest Rates
NZPA
05/01/2011
A leading bank economist is warning home buyers that current
below-average fixed term mortgage rates could start rising "quite rapidly".
Westpac senior economist Dominick Stephens said people had flocked to
the value of low interest floating rates, in the wake of the global
economic crisis and subsequent slow recovery.
But it would be prudent to keep a close eye on some key economic
indicators in the short to medium term to see if floating rates still
provided the best value, he said.
Consumers preferring a floating rate now might find they ended up
paying more over the next two years or so than if they took a fixed
rate, Mr Stephens said.
below-average fixed term mortgage rates could start rising "quite rapidly".
Westpac senior economist Dominick Stephens said people had flocked to
the value of low interest floating rates, in the wake of the global
economic crisis and subsequent slow recovery.
But it would be prudent to keep a close eye on some key economic
indicators in the short to medium term to see if floating rates still
provided the best value, he said.
Consumers preferring a floating rate now might find they ended up
paying more over the next two years or so than if they took a fixed
rate, Mr Stephens said.
Bank Forecasts Recovery Will Be A Hard Slog
James Weir - The Dominion Post
05/01/2011
The recovery will be a hard slog, but strong economic growth should
emerge in the second half of this year, according to ANZ Bank forecasts.
But the rebound will be off such a low base that "it won't feel
great", with the near-term outlook weaker than expected in the bank's
forecasts just three months ago.
New Zealand was not out of the woods yet and another "negative shock"
could yet push the economy into a double-dip recession, ANZ warned.
The economy is forecast to expand 3.2 per cent in calendar 2011, and
just under 3 per cent the following year. Growth in 2010 is estimated
to be about 1.6 per cent.
"The economy continues to drag itself slowly out of the hole," ANZ
said, helped along by low official interest rates and strong commodity prices.
emerge in the second half of this year, according to ANZ Bank forecasts.
But the rebound will be off such a low base that "it won't feel
great", with the near-term outlook weaker than expected in the bank's
forecasts just three months ago.
New Zealand was not out of the woods yet and another "negative shock"
could yet push the economy into a double-dip recession, ANZ warned.
The economy is forecast to expand 3.2 per cent in calendar 2011, and
just under 3 per cent the following year. Growth in 2010 is estimated
to be about 1.6 per cent.
"The economy continues to drag itself slowly out of the hole," ANZ
said, helped along by low official interest rates and strong commodity prices.
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