OCR Held @ 1.75%

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent.

The recent moderation in house price inflation was noted reflecting loan-to-value ratio restrictions and higher mortgage interest rates.

The announcement seems to leave open the possibilty of a lower OCR given international “uncertainties”.

ANZ Raises Fixed and Floating Rates

ANZ has today raised rates across the board except for the 6 month fixed rate.  Against a backdrop of a static 90 day bill rate and OCR they have also taken the opportunity to raise their Floating Interest Rates by 0.10%.

Interesting ANZ desribes the home loan interest rate moves as “making changes” as opposed to “raising rates”.

ASB Leads The Way With Interest Rate Rises

ASB are out today with its 2nd series of fixed interest rate rises in the past 3 weeks. The floating rate also gets a tweak up 0.10% despite the OCR cut a week ago.

3 years fixed up 0.40%

4 years fixed up 0.60%

5 years fixed up 0.50%

These are big moves over a 3 week period highlighting the benefit of staying in close touch with your broker if your not following the market yourself.

OCR Trimmed To 1.75%

As was widely anticipated the OCR was trimmed by 0.25% to 1.75% this morning.

Recently swap rates have been increasing. The 5 year swap rate was 2.32% back in late June, as at today its 2.72%.  This suggests an increased likelyhood of fixed interest mortgage rates rising.

FED and RBNZ Leave Rates on Hold

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.0 percent.  The Fed Funds rate in the USA was also left unchanged.

Our Governor indicated that on current projections the Cash Rate will need to fall further to ensure inflation gets up to the middle of the target range.

ANZ passes on 0.05 of 0.25% cut in the OCR

The ANZ, NZ’s largest Bank, has passed on to its floating rate borrowers a measly 0.05 of the 0.25% cut in the OCR this morning.

After announcing the cut Reserve Bank Governor Graeme Wheeler commented: “We would like to see most of (the OCR cut) passed on.”

In the OCR announcement there is a bias toward a further cut.

Property Investors need 40%

Today the RBNZ released a “consultation paper” about further lending restrictions being applied in attempt to slow down the price increases of the property market.

The majority of Property Investors will soon need a 40% deposit which is to be applied nationwide.  The Banks will start implementing this before the proposed start date of 1st September as the finger was wagged with “We expect banks to observe the spirit of the new restrictions in the lead-up to the new policy taking effect.”

PH: 0800 2 FINANCE. Auckland Based Mortgage and Insurance Assistance Since 2002