ANZ Cancels Hike in Mortgage Interest Rates
This could be a “limited window” to enter before rates start to rise again, according to an economist.
ANZ rolled back some of the mortgage loan changes earlier this month.
The bank said it was cutting its one-year, 18-month and two-year interest rates from 0.10% to 0.14%.
Long-term rates remain unchanged.
On August 17, ANZ increased most of its rates. It took a few days for the Reserve Bank to raise the official treasury rate (OCR) – either 20 basis points or 50 basis points.
But then a community outbreak of the delta strain of Covid was discovered and the bank postponed its increase.
* ANZ lifts most fixed lending rates as mortgages become more expensive
* Kiwibank lowers two-year mortgage rate as other banks increase rates
* Borrowers Should Prepare For Higher Mortgage Rates, Says ASB
Infometrics chief forecaster Gareth Kiernan said 90-day billing rates had fallen nearly 30 basis points since the rediscovery of Covid-19 in the community. Ten-year government bonds are about 15 points lower.
âThese indicators of lower wholesale rates seem to be repeating themselves in terms of bank funding costs,â he said.
What does the official cash rate mean?
âWhile ANZ took a bit of a head start by raising rates before the Reserve Bank announcement, I would say this is a relatively limited window for borrowers to lock in more fixed rates. lower than those they might otherwise have had access to now.
“It’s a safe bet that interest rates will rise from here, maybe even before the next Reserve Bank meeting on October 6. The lockdown has brought this Delta outbreak under control.”
The Reserve Bank is still expected to increase the official treasury rate in the near future.
Kiwibank economists said it would take an extended lockdown to avoid an increase in OCR in October.
âA two to four week lockdown would most likely be considered economically manageable. A prolonged Australian-style lockdown would certainly test the Reserve Bank’s resolve to increase from October. We hope that the foreclosure will be short and we hope to be able for the Reserve Bank to remove the stimulus measures. “