New Zealand's central bank cut its benchmark interest rate to a record low 2.25 per cent last week but that is unlikely to result in lower mortgage rates for Whangarei home buyers.
The BNZ says while it is constantly reviewing interest rates, the bank is not announcing any changes asa result of the cash-rate cut.
"There are a range of factors that impact if a bank increases or decreases its interest rates," said Craig Herbison, BNZ head of retail and marketing. "The OCR is one of them. Equally, one other consideration is the rising cost of wholesale funds due to a more volatile offshore market."
Christian May from the ASB also said the home-loan market remains highly competitive and consequently ASB's rates are "constantly under review".
The Reserve Bank has flagged the possibility of further cuts as the country grapples with weak international growth and lower prices for dairy exports. The New Zealand dollar fell more than 1 per cent immediately after the cut announcement.
Reserve Bank Governor Graeme Wheeler said, in a statement, there had been a decline in inflation expectations and there was a risk those expectations would become self-fulfilling. Still, the central bank anticipates gross domestic product will grow at an annual rate of about 3 per cent over the next two years, raising its forecast for 2016 and 2017, and trimming its outlook for 2018.
Unemployment is seen dropping below 5 per cent in 2018, with the bank slicing about half a percentage point from its forecast joblessness, and the government's operating balance is predicted to be flat in 2016.
