Mortgages

Reserve Bank raises rates and signals more to come

As expected, Reserve Bank governor Alan Bollard has raised interest rates for the fifth time this year and is promising more to come is likely.

Thursday, September 09th 2004

As expected, Reserve Bank governor Alan Bollard has raised interest rates for the fifth time this year and is promising more to come is likely.

He raised the official cash rate (OCR) from 6% to 6.25%, citing the surprising strength of the economy, stretched resources and strong inflation pressures.

Nobody was surprised at the move itself, least of all Bank of New Zealand economists who were already predicting another rate rise in October and a 40% chance of yet another move in December.

BNZ economist Stephen Toplis says his bank will probably move to a formal prediction of a December rate increase after today’s statement. That would take the OCR to 6.75% which he says "won’t be too far from the top."

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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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