The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent. Reserve Bank Governor Alan Bollard said:“Given ongoing uncertainty around global conditions and the moderate pace of domestic demand, it remains prudent to keep the OCR on hold at 2.5 percent.”
ASB Bank and its subsidiary Sovereign have trimmed home loan interest rates across fixed rates for the 12 month, 24 month, 36 month, 48 month and 60 month terms. 3 years fixed slides to 6.10% from 6.30%.
Earlier in the morning in the USA The Federal Reserve pledged to hold interest rates low until late 2014, a move that surprised markets and showed the central bank over there is still worried that economic growth is at risk of faltering. The significance of this to us is that the Banks here borrow in the region of 40% of the funds they require to lend out to us from offshore. If it costs them less to borrow those funds then there is potential for interest rates to remain lower here for longer.
Hope your all enjoying the blue sky 🙂