No change in rates after .5% OCR cut - have bank interest rates bottomed?

[markw1]

After the last OCR cut I thought banks would have cut rates by at least half the OCR .50 figure. Pretty much nothing has changed. Does this mean bank interest rates have hit the bottom? Best to fix all loans now? Your thoughts?

[Rizowz]

IMHO, best to float the next wee while away... I figure in 6 months time the banks may well start getting a bit more competitive for the longer term money (infact the whole lot most likely) as overseas borrowing is expected to ease up and the banks know that we know that Bollard has said no to any forseeable rise until sometime in 1010, so we're not going to get the mad-dash rush to fix as rates rise again.

My opinion anyway?! Who knows, you'll hunt me down in a year when rates have hit 20% :'(

[drelly]

I don't think longer term rates are likely to drop. If the problems predicted with Alt-A and ARM mortgages in the US turn out as badly as they say, money is only going to get tighter.