Economists have knocked back expectations for the next Official Cash Rate (OCR) increase significantly with some expecting it as late as March 2011.
This has been triggered by uncertainty in the global outlook and a string of weaker than expected domestic data.
In the meanwhile the gap between floating rates and long term fixed rates continues to close in as seen in this graph.
This is because floating rates have been increasing in synch with the last two Official Cash Rate (OCR) increases of 25 basis points, making an increase of 0.50% since June. At the same time there has also been a fall in two to five year fixed rates due to the decline in wholesale and swap rates.
Since the last newsletter ten lenders have decreased long term fixed rates ranging from two to five years.
Kiwibank has also announced who will replace Sam Knowles as its chief executive.
