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

 

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>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news