Wow what a difference a week makes, since this clip was created above fixed interest rates have gotten nice. How nice? We have three to five year interest rates almost touching a flat 6%. With even the shorter terms dropping within the last two days.
Why? Well the OCR remains unchanged, however the language associated with the last announcement was soft by the Reserve Bank of New Zealand. Coupled with lower inflation figures and further pain from business measures, banks are reading the writing on the wall.
What do I think? I am not an economist but know one thing for sure, most predictions are wrong half the time when it comes to fixed rates. We have an environment currently which is quite different to past slow downs. Stagflation is where we have inflation along with a subdued economy. It is something which can not be easily fixed with changing interest rates.
What should you do? Get advice, fixed short is not always the best idea even if you feel its a given that rates will drop. We are more than happy to talk, feel free to book a chat. Currently we are able to get almost 1% cash backs for switching banks.
