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

 


That’s all folks – OCR increases for 2014

That’s all folks – OCR increases for 2014

"Today's announcement by the Reserve Bank should be the last of the bad news for this year.

The expected increase of 0.25% has taken the Official Cash Rate to 3.5%. Most banks are already increasing their lending and investment rates. Floating rates with the major banks look likely to re-establish at between 6.25% and 6.50%.

Most economic and financial sources believe today’s adjustment is the end of a series of hikes with the economy looking like it’s falling into line with the Governor's expectations.

Interest rates have been at their lowest for decades but now we are in an era of small and steady increases. 2015 may see some more minor adjustments.

What does this mean for the average homeowner in New Zealand? It means if you have a $200,000 mortgage against your home then the interest component may end up costing you an extra $9.62 a week. If you're at $100,000 then you're in for half that amount or in real terms just a bit more than a large coffee a week.

We could all get 'up in arms' over the increases but let's be honest, it shouldn't break the bank and it’s going to be more about careful budgeting than selling up. I believe the national economy is in good shape and we've come a long way since the GFC and the ugly years of 2008-2012. I can still recall the 1980s and interest rates of 3-4 times what they are now so I still believe home ownership is sensible and affordable. First home buyers should not be deterred – it’s likely that 90% lending ratios may be back in, on a larger scale, later in the year and that in itself will bring more positive news and will be far more influential than the recent interest rate increases."

Mike Pero
Founder of Mike Pero Mortgages and Mike Pero Real Estate

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news