Borrowers should stay floating until someone comes along and offers a really attractive fixed rate says BNZ economist Tony Alexander.
In the BNZ Weekly Overview he says analysis suggests that over the next two years the floating rate will average 7.30%.
He says the current two-year rate is 6.70% so were it not for the fact BNZ thinks neither fixed or floating rates will go anywhere for awhile, he would say fix.
"We see little scope for change soon - and even a risk that fixed rates decline given the fall in wholesale funding costs recently."
Alexander says he would forsake the current 6.09% BNZ Total Money floating rate and jump into a two-year fixed rate if someone offered 6.35%.
The current three-year fixed rate is 7.15% and Alexander says a rate of 6.5% would have to be offered to sacrifice the floating rate.
"For your guide I have no insight into whether anyone is going to offer such rates soon and frankly don't expect such large cuts from current rates given rising bank funding costs."
