Mortgage Rates Commentary

Predictions for floating rates

Wednesday 19th of June 2013

Following the Reserve Bank announcement last week the market now prices 40 basis points of OCR hikes in the year ahead, and a 30% chance of a 25 point rate hike by year-end.

BNZ says it expects a first OCR hike in March next year. This would be the beginning of a process of ‘normalising’ the OCR from its current historic low of 2.50%. We then see a steady progression of the OCR to a...

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