Westpac lifts longer-term mortgage and term deposit rates by whopping 30 basis points
Westpac is hiking its two- to five-year fixed mortgage rates by a hefty 30 basis points due to the way the market has responded to the Reserve Bank cutting the Official Cash Rate a fortnight ago.
The tone the Reserve Bank struck in its commentary gave the market the impression it was closing the door to the possibility of the Official Cash Rate (OCR) being cut again.
This caused swap rates, which influence mortgage rates, to spike and remain elevated.
Two-year swap rates are about 40 basis points (bps) above where they were before the Reserve Bank cut the OCR by 25bps on November 26.
Some observers have over the past fortnight been saying it is only a matter of time before the first bank buckles to the pressure of rising funding costs and lifts its fixed mortgage rates.
Ok.
Ok.
Ok.
I don’t understand what is happening here – how did all of you miss this?
We discussed this very issue with the excellent Cameron Bagrie on The Bradbury Group on Tuesday night. You really should be watching The Bradbury Group.
From the very minute our new Nordic Ice Queen Reserve Bank Governor Dr Anna Breman, (she with glacial melt in her veins), has been VERY clear that she is laser focused on inflation.
Remember this Government dumped the dual mandate of inflation and jobs for just inflation and EVERYTHING the Ice Queen has said since her appointment is pointing towards her raising OCR to force inflation down.
That the Government are panicking is hilarious…
Nicola Willis urges mortgage holders to ‘shop around’
…some pundits have claimed the Reserve Bank have miscommunicated, but that’s a misunderstanding on behalf of the pundits.
The movement you are seeing is because those in the mortgage market smart enough to have heeded her warnings are already insulating themselves for the inevitable rise.
All those on mortgages who have lulled into a sense of false complacency that their mortgage costs are coming down are terribly misplaced.
The economy is in far worse shape than the cheerleaders for capitalism are proclaiming…
Pop the bubbly, the economic recovery is here (finally) – Liam Dann
…those green shoots of recovery are really the dried snot of desperation.
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I’m also semi-confused by what is happening here. I guess the lower interest rates are bleeding (some of) the banks due to the forcing of term deposits to seek higher yields from alternative sources? On paper this move by Westpac makes no sense. Perhaps they know something we don’t(?).
House prices will determine the outcome of the next election. National needs the trend to be increasing going into the election next year – higher interest rates is the last thing they want.
I’m sick of all this sexism! Women, women, everywhere, and all trying to be hard as nails’. Men look better in that part, and women putting on coloured jackets and getting botoxed more than men, don’t satisfy. Neither one thing or another. The really good women don’t snake their way to the top, but any that do like Jacinda aren’t hard enough and end up getting thumbs down.
I’m very pleased Dr. Anna Breman isn’t going to be Willis’ stooge. She can run rings round Willis in terms of knowledge and experience, and she won’t let that silly finance ‘spinister’ bully her.
The look on her face says it all. ‘I’m letting you blab on because I’m obliged to, but how on earth did you get this job?’
Go to another bank tell them Nicola sent you and promised a lower rate!
Oh fuck …that’s priceless..
that’s a gem…watch for the expression on the bank teller’s face….Bwwwwhahahahaaahahahahahahahahaha.
Bonne chance avec ca!!
We are all guilty of not confronting our banks ,power companies and insurance and accepting their terms without complaint. Thiscyear I have saved $1000 dollars by getting quotes from other companies and going back to my firm and they all matched the new offer. Managers hate having to explain when they lose customers who have with the firm 30 odd years.
Willis , Seymour, Bishop and Luxon, all have a say in the Finance portfolio…
ALL…once again …found to be in way over their heads…
Incompetence eventually outs!
This should come as no surprise to anyone who possess even an ounce of critical thinking and has the ability to see past the end of their nose!
Just proves Grant Robertson was an absolute financial genius compared to Willis the mum and English literature wannabe.
Yes …Robertson is highly intelligent, has critical thinking that Willis wouldn’t even understand and a moral compass that Willis doesn’t have the upbringing to relate to…
She can wear all the ‘power’suits that’s she likes but she’s not fooling anyone except Luxon , Seymour and Bishop who are all easily fooled.
You can put lipstick on a pig … but if it’s a dumb pig then…..
Mr Robertson needed to enure that the economy didn’t go down and promise stuff to the big corpse but then find it was unaffordable to that height sorry.
And there should have been touring vans that came to each street or suburb certain times say twice a week, once a day for food trucks with bread etc and water; with help and accepting requests. People were abandoned in fact, they were being kept plague free, but their mental if not bodily health was affected. Grant Robertson and all those people in economics give me a pain. It’s micro that’s important the macro economy is built on the micro. Pyramid shape.
As I said a financial genius compared to wacky Willis. You can despise Robertson all you like but he kept the country afloat during one of the most difficult financial pandemics in our history. That is a fact. Now tell me how many had mental breakdowns during that time because the general feedback was that most enjoyed the comforts of the lockdown? What was Robertson to do Greywarbler, let businesses go to the wall? I don’t think so and I thought you more intelligent than this.
Isn’t she really just doing her job the Reserve Bank staff were put under pressure almost bullied into those cuts as the economy was in the shit due to poor economic management. And then Nicola claimed the economy is doing better due to the OCR dropping and therefore expecting banks to drop their interest rates on loans.
” From the very minute our new Nordic Ice Queen Reserve Bank Governor Dr Anna Breman, (she with glacial melt in her veins), has been VERY clear that she is laser focused on inflation.
Remember this Government dumped the dual mandate of inflation and jobs for just inflation and EVERYTHING the Ice Queen has said since her appointment is pointing towards her raising OCR to force inflation down. ”
How can inflation be a problem???? 1. We have high unemployment 2. House prices have crashed since the Covid Quantitative easing inflated them 3. The economy is depressed 4. Doesn’t make sense to me!
But is there supply side inflation?
She needs to be careful – Willis et al desperately need a scapegoat.
They were hoping rate cuts would revive the housing ponzi, but once prices soften, no-one wants to be left without an exit strategy.
The coalition need to create the illusion of success, without actual success. The dead parrot defense of blaming Labour pays no grocery bills, and has stopped working. So now, austerity having failed yet again (big surprise) they’ve wheeled out the crazy bitch Ruth Richardson (Jenny Shipley being too compromised by her fraud convictions). Ruth’s job is to blame Willis for not austeritying hard enough – a laughable position, but our uncritical media won’t be pointing that out. It could work – not to revive the economy they’ve munted of course, but to fool the punters. Yet again. It’s a long shot, but not impossible.
So all this slashing to government spending hasn’t addressed inflation?
I would like to see housing included in the CPI so we then have a full veiw of real inflation .For decades houses have risen in price by 10% per year and this rise is not included in the CPI .A hand full of groceries is not a true reflection of price increases in the country ,are new car prices excludes I wonder and the new tractor or the price of that new bull or ram ,I doubt it .
Totally agree Gordon..food and shelter are the 2 most basic essentials of life…
Why then aren’t house prices included in the CPI….
People are being wilfuly deceived so other people can make lots and lots of money..