NZ's largest bank raises fixed home loan rates equal to or higher than main rivals

Interesting that the best rate for each term is not from one of the big 5

Complete rip off - look at wholesale rates

How can they ramp these up so much.

Good question Father Ted - wholesale rates up 40-70 basis points in the last couple of months yet banks dare to put mortgage rates up 5 points -  I await the explanation as well.

There have been big jumps in the 10-year Treasuries in the States in the last few days, since Ben Bernanke muttered about QE. In percentage terms the 10-year Treasury has seen a massive jump.

We are seeing that change reflected in our long term rates. 

Rates will come down again.

This is just a little reactive glitch.

Long term trend is Down. Must keep economies alive.....

The fundamentals of the US economy will be the key. If they disappoint, the recent bond sell off will be premature and we may see yeilds fall back again. Bernanke still has a dollar each way and will continue support to the economy if he has to.

I see from the interest website that ANZ have just reduced their serious saver online bonus saver rate, from 4% to 3.75%. Making them less than their competitiors. It doesn't really make much sense that  they would be reducing the saving interest rate, while raising the lending rate.

BoE Guidance:  Lower for Longer

ECB Guidance:  Lower for longer

RBA: Rescusitation mode: lower and then lower for longer

USA: Recovery mirage, Reality - Lower for longer

RBNZ: No OCR rises for 3 years:

Global outlook:   Lower for Longer

Lower, lower, lower, lower,

Must keep economies afloat in the face of joblessness, consumer conservatism, lack of growth.

Adivce: do not fix for longer than 18 months.   The teaser rates for 1 year are for "lock-in", & reluctance to allow "floating" rates to lead the market.

Very strong US payroll numbers overnight, and US bonds consequently up nearly 25 basis points by the close. NZ swap rates likely to be up another 10-15 come Monday morning putting additional pressure on bank's margins above their increasing cost of funds. How long can the beach ball get held below the water ? Where will fix rates be when floating rate hikes eventually come ? 

Looks like the current rise in wholesale interest rates may turn out to be a short term "bubble". Australia likely to head back into recession, UK and Europe look like having another serious downer and in the USA Bernanke most likely has it all wrong. Does anyone seriously think economies can recover if interest rates increase? Current fixed rate increases in NZ are a ploy to encourage people to lock in then a few weeks down the track they will drop them again. Stay floating people and if you are planning to fix then negotiate hard with your greeedy high margin bank - only a sucker would pay the advertised rate! 

Does anyone not negotiate hard BigBlue ? we all know that the true rate is slightly below the carded rate. Only issue you've got to think about with your advice is history. Remember that interest rates don't always rise just because economies are performing well - there is little doubt that a rate rise globally now would hurt alot, you've only got to observe the jawboning on here as to how desperate some are for that not to happen. But history shows plenty of examples where it happened where it was almost designed to do damage (1970's & late 80's) simply because inflation had to be crushed. Inflation isn't a problem in many countries currently, in fact disinflation is the trend, but the Fed's modelling will be telling them that, with the amount they've already printed, they will have to make moves sooner rather than later to ensure it doesn't raise its head again too far.

The Fed and other similar central banks want/need a long period of negative interest rates to inflate the debt problem away, and they can achieve that best by being seen to be taking steps to moderate inflation whilst still keeping interest rates low and keeping the debt burden manageable. If the market thinks they may lose control of inflation (and the mkt looks well ahead) then they will have considerably higher interest rates than the 10yr at 2.75% (up 1% in the past month or two) this morning, plus they will have an upward trend for both them and the globe that will be difficult to stop. So somewhat higher rates to stop considerably higher rates is the best we can expect.

Your predictions make sense to me Grant A.  But it can go either way.  Plenty of experts around, with totally opposing views to each other.

The remedy, in my view, is to get out of debt.  Good times, bad times, cheap or expensive interest.  Use them all to drive down the debt.  Having no debt gives you power.  And having power really works financially.  For example, you don't have to plan to very fine margins, with critical results, against a future (in this case interest trends) that is more or less a toss of the dice.

As for 'negotiating' with the bank.  Sure you can get some crumbs, but with their excessive margins, they are just playing with you.

KH - there are only really four recognised ways to overcome an excessive debt problem; grow your way out of it (with a debt to GDP ratio above 100% they're already past the point of being able to do that), print money and hand it back to your creditors (be it worthless to the creditors because of the devaluation of your currency that would entail), default, and or restructure (restructuring being a fancy name for default). The US doesn't have to default/restructure, as it can simply print money and effectively do No. 2 slowly, inflate their way out of the debt, and that's clearly the plan and what's happening.

By the way, what's US banks mortgages rates (presumed to be the most aggressive & competitive market in the world?),  about 3.5%?...what's their deposit rates 0.25 - 0.75%....what's NZ bank mortgage rates..about 5.5%...what's their cost of funds/deposit rates..about 4%...its all maths.

Good link Stephen  - not sure if this is it, but whenever it is, it's frightening. Those that don't think this is one of THE most important events that will play out sometime and impact us over the next few years are either naive or delusional - unfortunately there are at least three of them on here. And to think at least one NZ politician wanted us to go down the same route, not that we'd print a lot, just want we need that doesn't hard,  yeah right