Thursday 9th June 2005
|Text too small?|
Kiwibank cut its two year rate from 7.50% to 7.35% and National has cut its two, three, four and five year rates. Its two-year rate now stands at 7.65% and the longer term rates are 7.60% each.
The cuts have being made despite the Reserve Bank saying there was little scope for easing rates in the forseeable future, and more stronger-than-forecast economic data could see further hikes.
Kiwibank chief executive Sam Knowles said while Reserve Bank Governor Alan Bollard's accompanying statement might have been hawkish, "given the view of the economy, we don't see much chance of a rate rise".
However, most market commentators appeared to take the central bank's comments more to heart.
Economist Stephen Topliss of the BNZ said the Reserve Bank had "left the door wide open" to a further hike.
But Knowles said there were "always different views in the market". "But clearly if we're going down then we're taking a view that we're not expecting further rate hikes."
"We've always beaten the unbeatable both on the two year rate and on overall costs in terms of the home loan guarantee," Knowles said.
"We see there is the ability in the current market to provide better rates to our customers and continue as we do to provide some of the most competitive margins in the market."
To compare rates go to www.mortgagerates.co.nz
NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.
No comments yet
Genesis Power cranks out bumper profit
US visitor numbers leap 38% in January
Tourism ratings get megabuck boost
Business watchdog ready for busy year
Minimal debt impact from airline recap
Export prices weather uncertainty
Figures show tourism was booming
Court clears path for Commerce Commission
Close watch on hydro lakes
State-owned powercos not for sale