QE got a boost up to $100B today in the MPS. OCR remains on hold, for now, but a bias to getting the ducks in row to go negative in the near future.
The Banks got a nudge along with the following… ” It remains in the long-term interest of banks to fully pass on the benefits of lower funding costs to their customers. ” IE: lower the interest rates advertised to borrowers.
The Official Cash Rate (OCR) is being held at 0.25 percent in accordance with the guidance issued on 16 March.
The Committee noted that a negative Official Cash Rate (OCR) will become an option in future, although at present financial institutions are not yet operationally ready.
It was noted that discussions with financial institutions about preparing for a negative OCR are ongoing.
1 and 2 year fixed rates now in the 2’s…who would of ever thought.! 😉
This morning the Reserve Bank has slashed the Official Cash Rate by 0.75% to 0.25%. We have never been here before folks. Historic.
Floating interest rates and short term fixed interest rates should get a trim depending on how much of the margin main Banks don’t keep for themselves.
The OCR was kept on hold today @ 1%.
The Monetary Policy Committee adopted a wait and see approach.
No changes to Bank lending rates at time of writing.
Today the Reserve Bank slashed the Official Cash Rate from 1.50% to 1%. This is the lowest rate in NZ’s history.
Swap rates which largely determine fixed interest rate pricing moved substancially. The 5 year swap rate declined by 11% to 1.06%.
Variable and fixed interest rates for borrowers should fall as a result depending on how much is passed on to borrowers by the Banks.
The Reserve Bank held the OCR at 1.50% today but cited “….weaker global economic outlook and the risk of ongoing subdued domestic growth, a lower OCR may be needed over time to continue to meet our objectives.”
The Reserve Bank has today cut the OCR from 1.75% to 1.50% citing “continuing house price softness in some areas” which means in Auckland.
It seems unlikely that the 4 main Banks will pass on the full 0.25% cut to their floating interest rate borrowers.
The Reserve Bank has today kept the OCR @ 1.75%.
Of interest was the lengthening of the period that it could remain at this low level. “”We expect to keep the OCR at this level through 2019 and into 2020″”
Swap rates, the drivers of fixed interest rates, have declined today as a result.
The Reserve Bank has held the Official Cash Rate today @ 1.75%.
They noted they are ready to raise or lower the rate if required.
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.