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The New Zealand Medical Council has yet to finalize new guidelines to prevent clinicians from referring patients to treatments or clinics where they have a financial interest.
BNZ is the latest bank to lower mortgage rates.
On Friday, it said it would cut a series of interest rates.
The special 2-year interest rate for Classic Mortgages will drop from 6.59% to 6.45%. Its 3-, 4- and 5-year interest rates will drop from 6.69% to 6.79% to 6.59%.
Standard mortgage rates available to those who don’t own 20% equity will also drop.
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Long-term rates have generally fallen the most, but some commentators warn that long-term rates aren’t always a safe bet for borrowers.
Long-term rates are cheaper than short-term rates, with an inverted yield curve that happened when the market saw interest rate peaks ahead, said John Bolton, founder of Rhythm Mortgage.
But it could pose problems for borrowers, especially those sensitive to rising interest rates, he said.
“Everybody is a little bit cheaper on the 5 year and they have a little more money in their back pockets so they hurry up and then the curve collapses and suddenly short term interest rates go down and suddenly these guys face it all These break charges,” he said.
Ella Bates – Hermans/Staff
Banks, like any business, want to charge as much fees as possible. This is what it means for interest rates.
Economist Tony Alexander said he wouldn’t touch the 5-year rate “in a barge”.
“Or a four-year rate. Probably three years, or two years, with little to correct,” he said in a recent update.
“Personally, if I were to make any revisions in the near future, I wouldn’t look beyond a year out expecting a downward revision to monetary policy in 2024-2025, but I don’t know when that easing will occur. It has been started and we have no firm idea of how much it will add until.”
The Reserve Bank is expected to raise the discount rate again this month, but some economists expect it to move only 50 basis points from earlier forecasts of 75 as labor market and inflation data are weaker than expected. I’m here.
Gareth Kiernan, chief forecaster at Infometrics, said he would like to avoid further revisions.
“There are two possible paths for interest rates from here. One is that mortgage rates have peaked, at least in the long term, and there probably isn’t much chance of short-term interest rates rising.
“The logical accompaniment to that assessment is that the economy could slip into recession in the next few quarters, with interest rates likely to be significantly lower than they are today, within the next 12 months. By 2024 or 2025. When the very high mortgage rate payments get stuck, people are stuck for five years because it’s the lowest interest rate available, in 2009/10 after the global financial crisis.”
But banks may have gotten ahead, as they did in July and August last year, and fixed rates on mortgages could rise further, he said.
“Whether that is the case will have a better feel at the Reserve Bank’s next monetary policy review later this month. If the Fed remains hawkish, wholesale rates could rise further in the coming months, reversing recent rate cuts.
“While the latter result may mean that jumping into and taking advantage of temporary declines in long-term interest rates will pay off relatively well in the short term for borrowers, it is There is still a fair chance that it will end up being relatively low, and once inflation returns to control over the interest rate hump, it will be expensive. increase [one or two years]Because the balance of probabilities suggests it will still be a low-cost option in the long run. ”
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