The boss of Kiwibank, which recently launched its lowest ever advertised home loan interest rate, says interest rates may not go any lower from here.
Asked by interest.co.nz in a briefing on Kiwibank's record half-year profit whether home loan rates could fall further, Brock said probably not but hedged his bets.
"My sense is this is about as low as it goes," said Brock. "But then again who wants to pick that?"
"I guess it just depends on what's happening in the economy overall and my view at the moment is we're sort of in an interesting period. The rates now may continue a bit longer and then we may see a bit of an uptick further down the track as the economy picks up, if it picks up."
"So what people are doing is looking to lock in some of those competitive deals before any pick up in the broader economy pushes rates up."
Kiwibank was currently seeing a "slight" customer preference for fixed-term rates, as opposed to floating rates, from new customers being signed up.
Earlier this month Kiwibank launched a "limited time special" six-month, fixed-term home loan interest rate of 4.79%, which is the lowest advertised, or carded, rate the bank has offered in its 11-year history.
Other banks, including Westpac, have also been running aggressive, low advertised rate specials of late. Westpac offered a 4.89% one-year rate, 5.39% three-year rate, and 5.75% five-year rate, which interest.co.nz believes to be the lowest ever five-year rate advertised by a bank.