16 Feb 2012

Falls in interest rates due to static OCR

9:46 am on 16 February 2012

ANZ chief economist Cameron Bagrie says mortgage interest rates are falling because the Reserve Bank looks unlikely to raise the Official Cash Rate.

The ANZ and National Banks have cut fixed interest rates on home lending in New Zealand.

Mr Bagrie says interest rates have been falling for some months because the Reserve Bank is expected to keep the OCR low for some time.

He says mortgage interest rates could fall even further, but this would probably happen only if there were serious problems with the global economy.