BEVS

I've just read this on the Radio NZ News website.

so interest rates for mortgages are coming down a little.

That is just in time & good news for us as our fixed rate finishes next month.

lardyl

Bah humbug......all the cash I have squirrelled away (somewhere) will reap less interest.....get out of my way Crotchet......

Whilst I collect me "gong" for 3000 posts.........

Black Sheep

It's very very good news for all the current wannabe-immigrants. Mortgage rates (about the highest in the world) expected to come down atlast, NZ$ in freefall against US$ and looking promising for GBP holders too. The past year has been very very tough for many here, and this is the first sign of the tight squeeze easing a bit (about time it must be said though! NZ reserve bank just about the last in the western world to take any action). Some of the banks have already significantly reduced their mortgage rates today - I expect a few champagne corks will be popping tonight across the country, and many sighs of relief expelled.

Not looking too good though for those trying to leave, with unsold properties and poor exchange rate - many who've been here over the past few years could be taking a huge hit, although lower mortgage rates may help get a few more houses sold...

Am Loolah

Just watched the news. It is indeed good news for some. But I always find it a bit cheeky that in this case the 1% drop only amounts to between 0.2-0.7% passed on to Joe Public. I bet they drop the interest earned on savings by more though ...

Just checked emails - what do you know? You guessed it. Our savings rate slashed by the full 1%!!

whitesand

I think it's a balancing act for the banks here, and that's why they were reluctant to drop before this. If they drop their savings rates too much then they may lose their Japanese investors whose money keeps the NZ dollar high.

The trouble with dropping the mortgage rate is that you may encourage all the crazy behaviour and reckless buying which caused the trouble in the first place.

Black Sheep

It's a balancing act for banks everywhere, not just here in NZ - and the banks here had already lost their Japanese investors with the first OCR cut and the promise made at the time of further cuts to come. If NZ is still worried at this point in time about encouraging 'crazy behaviour' and 'reckless buying' , they'd be about the only country left in the world with that attitude. But then NZers are supposed to be 'tougher' than everyone else and able to handle crises and severe belt tightening better than just about anyone else - so hey, what a great opportunity to really test that theory out..... NOT!