Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


ASB Bank: Variable Mortgage Rates Should Rise

Statement made by Anthony Byett, Chief Economist, ASB Bank

Variable mortgage interest rates should rise further than the 0.25% rise in the Official Cash Rate announced by the Reserve Bank on Wednesday.

The 90 day-bank bill rate, which sets the pricing of variable mortgage interest rates, has risen by just over 0.5% over the last 2 months. This means the variable interest rate charged by major banks should realistically move to around 7.2% p.a. from its existing 6.70%p.a.

However, it is difficult to see banks moving by such an extent given the lesser increase in the Official Cash Rate, but they are likely to settle somewhere between the two points.

Some moderate dampening of housing market confidence can be expected as a result of these and pending future interest rate increases, although the effects may be difficult to gauge given that housing market activity seasonally declines post-Easter in any event.

Fixed term mortgage interest rates have now broken through the 7.00% p.a. barrier, but still remain low by historical terms.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news