Following a 50 basis point cut to the official cash rate (OCR) by the Reserve Bank, all major banks have reduced their floating mortgage rates, with Kiwibank lowering its rate to 6.75%, ASB to 6.89%, and The Co-operative Bank to 6.45%.
BNZ and ANZ have also made similar reductions. However, economists are divided on the impact, with Infometrics’ Gareth Kiernan warning the Reserve Bank may be cutting too aggressively, risking an overshoot.
Meanwhile, Kiwibank’s Jarrod Kerr told state-funded media further cuts are necessary to stimulate the economy amid rising unemployment.
CoreLogic’s Kelvin Davidson suggests future rate reductions may be slower, while mortgage advisers urge borrowers to demand full rate cuts from lenders. Competition among banks is intensifying, with some already offering fixed rates below 5%.
Image credit: Pixabay
So, more fiat money will be created out of thin air, stealing purchasing power from existing currency, which will then feed through as prices rising (inflation), but in reality, is the loss of your currencies purchasing power. Thanks to Central Banks. Buckle up for a back to the 70’s decade of incoming inflation, and a weaker dollar.
The interest rate drop will help some. However this goverment must tackle the heavy loss of people to Australia and the grip these supermarket chains have on the nation.
NZ legislated to end telecoms control and now its goomanfeilder and progressive foods turn. Award 100 key stores to Aldi and the food prices will fall about 22%.
If you cannot buy gold, buy silver NOW.
It is very much under evaluated and its price is going to shoot up.
It is now still affordable for a small budget.
You can buy one or a few coins at a time.
https://youtu.be/vmHHmBA4Emg?feature=shared
Great video for novices such as me..
https://www.bullionstar.com/blogs/bullionstar/lbma-offered-to-censor-bullionstar/
Gold info