House Prices

Basic knowledge of financial data can help save money

How to pin tail on donkey

Thursday, August 05th 2004

ECONOMICS: Financial data look dry but even a basic knowledge can help save you money in the long term

Economic statistics can seem dry and dull, but what's going on in the economy affects your back pocket.

A little understanding goes a long way to anticipating interest rate changes and helping plan finances.

The Reserve Bank of New Zealand independently decides monetary policy and sets a benchmark interest rate, called the official cash rate (OCR), which commercial banks use to determine mortgage, deposit and lending rates.

When the letter arrives to say your variable mortgage rate is going up or higher term deposit rates encourage you to save more, the Reserve Bank has made an OCR decision.

So Thursday's Reserve Bank decision to raise the OCR to 6 per cent will likely filter down to a personal letter from your bank soon.

The financial markets fluctuate according to opinions about what is happening in the economy and how banks and brokers think the Reserve Bank will react.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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