Results: Bank Policy
Borrowing costs to banks unusually high at the moment
One of the more interesting things in the wholesale money markets at the moment is that swap rates have risen so far they imply an...
Monetary policy to tighten before it loosens again
the fixed rate costs to banks of borrowing money to lend at fixed interest rates have soared in recent weeks. That is why we are s...
Mortgage rates still yet to peak
An analyst was quoted recently saying she believes fixed mortgage rates are already at their peaks. I can see where she's coming f...
OCR remains unchanged, RBNZ to keep monetary policy steady
There's no reason for strongly believing that we face a future of sustained high inflation which will require an interest rate crunch. But borrowers should pay attention to the upside risks and the extreme uncertainty regarding how far and fast rates rise.
Why interest rates will remain low for a few years - Tony Alexander
Banks lend out about $280 billion to households for housing purchases. But they have funding from households exactly equal to $200 billion. It might pay to stop and think about that number for a moment.
Rate cuts are likely to be short term only
Margins are below average for terms of three years and longer. This tell us that unless there's a change in borrowing costs, anyone holding out for further falls in rates is taking quite a gamble.
Breaking: Loan-to-value (LVR) rules are removed by the RBNZ
The Reserve Bank of New Zealand (RBNZ) announced yesterday that the loan-to-value ratio (LVR) restrictions that they put in place back in 2013 will be removed from 1 May for 12 months. So what does this mean?
