Mortgages

Pressure on Reserve Bank to increase rates again

Higher construction costs, petrol prices and council rates kept inflation bubbling along in the September quarter, keeping the pressure on the Reserve Bank to increase interest rates for a sixth time later this month.

Sunday, October 17th 2004

Statistics New Zealand figures show the consumer price index rose 0.6 per cent in the September quarter from the June quarter and was up 2.5 per cent from a year ago.

Economists said the result met expectations and ensures Reserve Bank governor Allan Bollard will have no choice but to increase the official cash rate by 25 basis points to 6.5 per cent on October 28.

Another rate rise in December was also on the cards as inflation threatened to nudge through the top end of the central bank's target zone of 1 to 3 per cent early next year, they said.

A seventh rate hike in less than 12 months would push floating mortgage rates close to 9 per cent and suck further heat out of the housing market, which is already showing signs of slowing.

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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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