Reserve Bank Governor Alan Bollard held the official cash rate at 2.50% today, as expected, and reiterated his view that the rates will stay low until the end of next year.
This is in contrast to the markets which have been suggesting rate rises early next year.
However, as we report here, he has changed his position on whether there will be further interest rate cuts.
Meanwhile, TSB Bank has dropped its six month fixed home loan rate from 5.50% to 5.35%. That makes it the lowest rate for this term, just pipping HSBC and Westpac which both sit at 5.39%. The median big bank six month rate is 5.48%.
