Most Active - Last 30 Days
16-02-2017, 08:00 AM
And they shouldn't because?
Originally Posted by eri
What is the relationship between the OCR and mortgage rates?
16-02-2017, 09:29 AM
Banks profits down a bit for the first time in 7 years.
It has amazed me how we had a GFC and the banks started making more and more money just after that occurred.
They've been absolutely creaming it for 7 years.
Should have bought some bank shares back then!
16-02-2017, 08:33 PM
ASB profit UP 6%.
The new down is up.
16-02-2017, 08:40 PM
Is this fake news or alternate facts... I can't keep up
16-02-2017, 08:42 PM
16-02-2017, 08:53 PM
Two different things. First article compares 2016 to post-GFC environment. Second compares ASB profit over the last 6 months to their numbers from the worst six month period post GFC
18-02-2017, 07:57 AM
Maybe I am naive and don't understand our banking system well enough but.. Considering a large portion of our banks are Austrlians owned - one would expect to have similar interest rates to our Australian cousins?
Why is it almost all of Austalian floating rates are significantly under 3.8%, while ours are upwards of 5%.
Last edited by Camu; 18-02-2017 at 08:24 AM.
18-02-2017, 09:19 AM
I'm guessing that it's about flows of money.
Originally Posted by Camu
And that money isn't free to flow between Australia and New Zealand in quite the way you think.
If we had a common currency and common laws and government, ie Australia was a district of New Zealand, then your thinking would have some grounds.
18-02-2017, 09:36 AM
18-02-2017, 09:38 AM
It's entirely consistent with what they're saying, though.
In Australia, they may have a much larger domestic funding source, so don't have to borrow internationally. In NZ, we have a comparatively smaller domestic funding source, so have to borrow more internationally. Hence higher prices.
Not saying this is the actual situation, but it's a pretty obvious way to interpret what they're saying.
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
Tags for this Thread