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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news