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Thread: Interest Rates

  1. #5951
    Join Date
    Jun 2004
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    10,598

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    Quote Originally Posted by Bluekiwi View Post
    Now as of this morning, there is no bank movement on 6 month to 18 month rates, those directly related to short term OCR borrowing.
    Why are 6mth and 1yr rates directly related to the OCR?
    The OCR is a day by day thing ie floating.
    Banks, after the GFC, were told to keep their borrowings and lending periods in touch with one another. Many banks got caught out with short borrowing and long lending (not so much in NZ) so the rates longer than floating are more related to the bond spread. Has that changed?

  2. #5952
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    Nov 2006
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    Last year, at this time, banks were ramping up their 1 and 2 year rates. Just started to do that again I see. This was an interest rate blip in the market and did not sustain itself for very long. Many pundits are picking rates to be in the 2's. I have one coming off in May. It will be a decision then, do I go for 6 or 12 months. The jury is still out on that.

  3. #5953
    Join Date
    May 2008
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    Torbay, Auckland
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    Quote Originally Posted by Wayne View Post
    Why are 6mth and 1yr rates directly related to the OCR?
    The OCR is a day by day thing ie floating.
    Banks, after the GFC, were told to keep their borrowings and lending periods in touch with one another. Many banks got caught out with short borrowing and long lending (not so much in NZ) so the rates longer than floating are more related to the bond spread. Has that changed?
    I admit I don't know all the ins and outs of this, and you are possibly correct.
    But that's not how the Banks work in spirit, or how the public expects them to work.

    ANZ 1 year rate just announced 3.05% for 1 Year.
    If BNZ do that also, then I am taking some of that action.
    Paul Magill B.com
    Bluekiwi Property Consulting

  4. #5954

    Default

    Quote Originally Posted by Bluekiwi View Post
    I admit I don't know all the ins and outs of this, and you are possibly correct.
    But that's not how the Banks work in spirit, or how the public expects them to work.

    ANZ 1 year rate just announced 3.05% for 1 Year.
    If BNZ do that also, then I am taking some of that action.
    Me too - closing out our RC's and fixing the 1 yr rate. In the GFC banks called in a lot of RC's as they're easy to close. Locking in and keeping the cash under my mattress.

    Noted they only cut the previous rate by 0.65pts - likely to not want to break under 3%
    Last edited by Don't believe the Hype; 18-03-2020 at 06:42 PM.

  5. #5955
    Join Date
    May 2008
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    Well I decided not to wait any further, and the reason is this.
    If things get bad, rates go down, if they get really bad, they go lower for longer...…….
    If things turn to shit, rates go nuts skywards as no one feels safe to lend money to anyone, GFC as an example.

    So I bit the bullet and fixed 1.7m today from May, at 3.05% for 18 months.
    Maybe before 7/5 the rate could drop lower, as we are in a quick moving fast vicious downward spiral.

    But dropping my annual interest bill by $36,000 makes me feel safe in these uncertain times.
    That's a $700 bucks a week improvement in cash flow, locked in for 18 months.

    That's a good amount of time to be safe, and a specific amount of time to me that I know for certainty, the world economies are still going to be ****ed.
    I am comfortable that in September 2021 (early rate lock in affect) the economy will still be in recovery mode and rates low.
    Paul Magill B.com
    Bluekiwi Property Consulting

  6. #5956
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    Sep 2004
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    Hastings
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    Sounds good. Especially given your prediction on such matters. How's it looking?
    Quote Originally Posted by Bluekiwi View Post
    I predict one OCR increase at end of year, and Interest rates longer term ones, slightly increasing from June.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  7. #5957
    Join Date
    May 2008
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    Don't be a dick Perry.
    Any prediction hijacked by CV19 is off the table buddy, get real, don't be a pratt.
    Paul Magill B.com
    Bluekiwi Property Consulting

  8. #5958
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    Sep 2004
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    Hastings
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    Uh-oh. So predictions are what, then?

    No more than an excuse for logical fallacy ad hominem name-calling?

    Keep smiling.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  9. #5959
    Join Date
    Mar 2015
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    Brisbane Wellington Auckland
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    933

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    Quote Originally Posted by Perry View Post
    Sounds good. Especially given your prediction on such matters. How's it looking?
    Do the opposite of what I do .
    I am always wrong :-(

  10. #5960

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    Heartland Bank has just dropped their rate to BELOW 3%... 2.89% for 1 yr


    https://www.goodreturns.co.nz/mortgage-rates.html


 

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