Unsurprisingly the Reserve Bank left the Official Cash Rate at 2.50 percent this morning.
http://www.rbnz.govt.nz/news/2013/5236174.html
Governor Wheeler’s comments indicate that with the Kiwi dollar at record highs and the NZ economy still sluggish there is little likelihood of NZ borrowers seeing interest rates rise this year. Competition amongst the banks remains fierce and this is also playing its part in keeping interest rates low. The “heat” of the Auckland housing market remains a concern for the Reserve Bank but in reality there is little that can be done about this without impacting the rest of the country. We continue to favour floating then as the ideal interest rate strategy for borrowers given that rates look set to remain stable for some time. In saying that many attractive fixed rates are now on offer and these may suit certain individuals given their own personal financial circumstances.
UPDATE:
Did you know you can follow us now on Facebook and Twitter? LIKE us on Facebook to receive our updates more regularly.
Comments (0)