For borrowers, it is time to sort out your loan strategy for the next few years. The RBNZ has signalled it is likely near the end of the interest rate cutting cycle. Accordingly, we expect some further downward movement for short-term rates. For longer term rates, the picture is more complicated. Longer-term fixed term mortgage rates have recently lifted - particularly the 5-year rate.
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Report Prepared by:
Chris Tennent-Brown
CBA NZ Economist
Phone: +64 9 374 8819
Fax: +64 9 302 0992