Current vs five-year average

With the Reserve Bank Governor Alan Bollard keeping the official cash rate at a record-low 2.5% and saying tame inflation data gave him breathing space to stick to his timeline of a mid-year rate hike puts more emphasis on and should make the decision a little easier for borrowers to continue looking short in terms of mortgage rates for at least the next year.

The above graph shows the current rates for our five major banks compared to the five-year average.  The main areas of interest here is the sizeable gap between floating and short term rates as opposed to our current five-year fixed rate being higher than the five-year average with more increases on the cards in the near future.