OCR Rate

[Finn]

Okay boring but worth mentioning...

Alan Bollocks dropped the rate by 150 basis points this morning. Kiwibank quickly dropped their rate and the Herald gave them some free advertising. My point is this; Kiwibanks lowest rate last week was 5.99%. With an OCR drop of 1.5 to 3.5, Kiwibank drops it's lowest rate to 5.69 per cent. Big deal.

While I realise there are other things at play here, it's funny how Kiwibank have quickly become fat pigs like all the other banks.

[Pumba]

If you listen to the banks they say that they had already factored in a fall of 100 basis points into there pre rate cuts, "so dont be suprised if we dont move them much lower" they say.

If it smells, looks, and tastes like bullshit, guess what, it noramlly is bullshit.

Actually do the banks and petrol companies get togeather to figure all this out cause there tactics aint so different.

[Mully]

it's funny how Kiwibank have quickly become fat pigs like all the other banks.

Guess the temptation was too much for them, poor little tykes.

[Mully]

Actually do the banks and petrol companies get togeather to figure all this out cause there tactics aint so different.

Yep, with Fonterra. Did you see the bloke on the news last night "Well, local dairy prices will go down, eventually"

It's nice being able to print money. And it's natural to want to protect that, I guess.

[Finn]

If you listen to the banks they say that they had already factored in a fall of 100 basis points into there pre rate cuts, "so dont be suprised if we dont move them much lower" they say.

Banks are the most conservative institutions in the world. They would never do such a thing. Also, they got us into this shit in the first place. Bastards.

[ManDownUnder]

Banks are the most conservative institutions in the world. They would never do such a thing. Also, they got us into this shit in the first place. Bastards.

yeah but they must have already factored in the rate drop. Bollard was on a promise to drop it at least 100 points. 150 was a nice surprise and it's only about 70% of the OCR rate drop that's passed through (in my experience with Nat Bank anyway)... so the extra 50 points would concvert to an additional saving of 35 points off the rate... sounds about right.

It was a safe and easy thing for them to do.

I got notice from the Nat Bank this morning of my floating interest rate drop - effective Feb 16... down to 7.25%... and that's on the back of the LAST OCR announcement in December. It takes them about 6 weeks to bering changes into effect - and notice arrives on the day of the next cut. Talk about average performance...

[Pumba]

Banks are the most conservative institutions in the world. They would never do such a thing.

That was my original thoughts as well, but what I said above it what I heard. Once again bullshit.

[pritch]

Apparently when the US Govt paid out money to the banks from George W's TARP scheme the idea was that the banks would start lending again.
But nooooo!

Apparently one bank used the money to buy a new corporate jet, and another has used the cash to decorate their offices.

Just as well "it's not real money, it's only taxes..." :whistle:

Our Govt tried to pressure the banks here to lower their interest rates but apparently their Australian directors remained unmoved. Kiwibank and the TSB may find it more difficult to ignore Mr Key's suggestions, however, and a lowering of their rates could in turn put pressure on the Oz banks.

[ManDownUnder]

Interesting the FX markets reacted but the dollar resorted back to where it previously was... good for importers.

... wish I was an importer...

[Finn]

... wish I was an importer...

Aren't we all?

[McDuck]

Over all i think that i should buy a house. Not a big nice one, just a house.

[Ragingrob]

The Official Cash Rate... Rate? Just like the new Auckland University of Technology University!

:confused:

[Quasievil]

Interesting the FX markets reacted but the dollar resorted back to where it previously was... good for importers.

... wish I was an importer...

yes that was interesting, however importers (as fin points out we all are) will be and are putting their prices up then its going to get interesting, how much will the retail market drop??
from our perspective we have to at some stage adjust pricing but fuck its hard enough now to get sales in the sector without price rises, meantime the Banks are creaming it

[Finn]

The Official Cash Rate... Rate? Just like the new Auckland University of Technology University!

:confused:

Shut up up.

[Naki Rat]

To paraphrase this morning's comments from Gareth Morgan, the interest rates are now becoming of lesser importance as security of income starts to suffer. In other words, if you loose your job a few percent difference in mortgage rates will make little difference 'cause you're down the tubes anyway :buggerd:

[McDuck]

To paraphrase this morning's comments from Gareth Morgan, the interest rates are now becoming of lesser importance as security of income starts to suffer. In other words, if you loose your job a few percent difference in mortgage rates will make little difference 'cause you're down the tubes anyway :buggerd:

but it means that those of us with 100%secure incomes (short of getting myself fired) will find life a little easyer.

[yod]

and onwards and upwards go the petrol prices

$1.63 for premium now is it?

[yungatart]

but it means that those of us with 100%secure incomes (short of getting myself fired) will find life a little easyer.

Trust me, a weekly/fortnightly/monthly wage packet/salary is NOT a 100% secure income.

[Badcat]

Banks are the most conservative institutions in the world. They would never do such a thing. Also, they got us into this shit in the first place. Bastards.

fuck. i agree with finn.
i'm going off my meds.

k

[WRT]

The Official Cash Rate... Rate? Just like the new Auckland University of Technology University!

:confused:

Hmmm, I wonder what the 'B' stands for in ASB Bank?

[Hoon]

My point is this; Kiwibanks lowest rate last week was 5.99%. With an OCR drop of 1.5 to 3.5, Kiwibank drops it's lowest rate to 5.69 per cent. Big deal.


Don't forget that Kiwibank have already dropped their rate from 6.49% last Friday in anticipation of the OCR.

[firefighter]

yeah but they must have already factored in the rate drop. Bollard was on a promise to drop it at least 100 points. 150 was a nice surprise and it's only about 70% of the OCR rate drop that's passed through (in my experience with Nat Bank anyway)... so the extra 50 points would concvert to an additional saving of 35 points off the rate... sounds about right.

I got notice from the Nat Bank this morning of my floating interest rate drop - effective Feb 16... down to 7.25%... and that's on the back of the LAST OCR announcement in December. It takes them about 6 weeks to bering changes into effect - and notice arrives on the day of the next cut. Talk about average performance...


yes I am stuck with the assholes too, I wish i'd gone with kiwibank now, I can't change because as it is I broke out of my fixed rate a few months back and have to wait until I can re-finance with kiwibank- which is what I will do and should have done from the start- I bloody well hate hindsight...oh well

[McDuck]

Trust me, a weekly/fortnightly/monthly wage packet/salary is NOT a 100% secure income.

No, but i know that my boss has plans for me for the next 2 years at least, IE i am staying where i am.

[Starky307]

No, but i know that my boss has plans for me for the next 2 years at least, IE i am staying where i am.

That could all change.

Right now being a midwife or an undertaker is about the only thing guaranteed. And guess what, it will get worse before it gets better.

[McDuck]

That could all change.

Right now being a midwife or an undertaker is about the only thing guaranteed. And guess what, it will get worse before it gets better.

Yes it could, but i know enough about my employers company to feel safe.

[Fatjim]

What pisses me off is Westpac want a mate to pay $31,000 to break out of his fixed rate loan. We worked that if he broke out yesterday for that fee he would reduce his interest payments over the remaining term by only $21,000. That means if he broke his fixed term, the bank would make an ADDITIONAL $10,000 from him. The mortgage rate would have to fall to about 3% rather than the 6% we factored to break even.

Now that is genuinely ripping people off.

[ManDownUnder]

Classic ... interest rates drop... mortgages are cheaper... and we still find plenty to bitch about...

Gotta love KB - tough crowd...!

[Starky307]

Yes it could, but i know enough about my employers company to feel safe.

Then I hope you will not be affected.

On a brighter note, if you are thinking of buying a house then just sit back and watch the prices tumble.

[Brett]

Aren't we all?

Too true.

The banks are like the oil companies, quick to increase...always full of bullshit and excuses when it comes time to drop the prices...much rather have nice fat margins.

[Colapop]

OCR drop pretty much means (in layman's terms) Mortgages won't cost as much, the NZ dollar goes down against foreign currencies = no real saving coz you end up paying more for fuel and food and anything that's imported. The GrubbyMitt(s) cannot make the OCR a negative value just empty what's already their and borrow more or charge more in taxes. Nothing's changed - just where the money gets paid to...

[Hoon]

What pisses me off is Westpac want a mate to pay $31,000 to break out of his fixed rate loan.

Change banks. BNZ charged us $1100 on a $200K 5yr fixed rate still with almost 3 yrs to go. I worked out it'd pay for itself in 9 months.

[ManDownUnder]

Change banks. BNZ charged us $1100 on a $200K 5yr fixed rate still with almost 3 yrs to go. I worked out it'd pay for itself in 9 months.

I believe that's the very problem - it'll cost him too much to change banks. Now if he was already with the bank he wanted... THEN he could change...

... but wouldn't want to....

[imdying]

Now that is genuinely ripping people off.Is it really? Didn't they give him a contract to sign which detailed how the charges were worked out?

[jrandom]

Banks are the most conservative institutions in the world. They would never do such a thing. Also, they got us into this shit in the first place. Bastards.

Read this NY Times article (http://www.nytimes.com/2009/01/04/magazine/04risk-t.html?_r=1) yet?

[Ragingrob]

Hmmm, I wonder what the 'B' stands for in ASB Bank?

Yep another funny one... Although officially the company is now known as "ASB bank" and no longer as "Auckland Savings Bank". The ASB part doesn't really stand for anything these days.

[Swoop]

What pisses me off is Westpac want a mate to pay $31,000 to break out of his fixed rate loan.
Now that is genuinely ripping people off.
That is called foresight and planning.
Something that kiwi's lack.

[Shadows]

My point is this; Kiwibanks lowest rate last week was 5.99%. With an OCR drop of 1.5 to 3.5, Kiwibank drops it's lowest rate to 5.69 per cent. Big deal.

While I realise there are other things at play here, it's funny how Kiwibank have quickly become fat pigs like all the other banks.

It's a risky business loaning large amounts of money to people so that they can buy expensive and currently depreciating assets in a shaky economy. Can't blame 'em really.

[mashman]

meantime the Banks are creaming it

:niceone::niceone::niceone:

I think that's what the guys on Close Up where having a pop at tonight...

[rainman]

Read this NY Times article (http://www.nytimes.com/2009/01/04/magazine/04risk-t.html?_r=1) yet?

A good read, ta. I'm not sure about Taleb. At one level he's obviously, trivially, right - but he also seems to lack the ability to present his thesis in a "fully joined up" kind of way. There seem to be leaps of faith along the way.

But this is based on podcasts and the web. Maybe I should actually read his books.

[Quasievil]

:niceone::niceone::niceone:

I think that's what the guys on Close Up where having a pop at tonight...

I see BNZ new credit card interest rates have dropped a whole 1% to 21.75% how can they justify that?

[jrandom]

At one level he's obviously, trivially, right - but he also seems to lack the ability to present his thesis in a "fully joined up" kind of way.

That's been my experience with the writings of a lot of blowhard American academics. Vast amounts of hot air and derision to conceal the fact that they're just spouting the obvious. It does seem to be a bit of a cultural thing.

[yungatart]

I feel sad for hXc...his hard earned spending money is being whittled away before he even gets to use it....Euro was approx .50 in August when he left, now it is .39....c'est la vie!

[imdying]

There is nothing stopping him from converting what he has already has right now. I've a number of greenbacks that've proved a mighty solid investment :D

[McDuck]

Or spending as little as possible and wait till it comes up a little.

[Finn]

Read this NY Times article (http://www.nytimes.com/2009/01/04/magazine/04risk-t.html?_r=1) yet?

Financial advice from an academic American?

[Lias]

On a completely unrelated note, I really wish he'd stop dropping the OCR. I want our government to do everything it can to achice dollar parity with the greenback.

Partly so I can sit and laugh at all the farmers that will top themselves, but mostly because I dont give a fuck about exporters and simply want cheaper imported shit.

Not to mention that their attempts to save our economy are slowing the tumble in house prices.. I want our economy to tank so hard you can buy a central auckland penthouse for $100k :-)

[ManDownUnder]

Financial advice from an academic American?

Why not - the US financial system's something we could all learn from! Ask Fanny... or Freddie...

[McDuck]

Partly so I can sit and laugh at all the farmers that will top themselves, but mostly because I dont give a fuck about exporters and simply want cheaper imported shit.



Dont worry you would lose out in the end.... there is a reason why primary industry is called primary industry.... (ignoring all risk of responding to a P/T)

[Lias]

Dont worry you would lose out in the end.... there is a reason why primary industry is called primary industry.... (ignoring all risk of responding to a P/T)

There was a quasi note of reality in the p/t, it really does piss me off when our dollar is low against the US, and I'd genuinely like to see our currency pegged against the US at upwards of 75cents.

[McDuck]

There was a quasi note of reality in the p/t, it really does piss me off when our dollar is low against the US, and I'd genuinely like to see our currency pegged against the US at upwards of 75cents.

While it is nice having it up that high for inports etc you do need to remeber thatthere are also many people kept in work for exporters through opperations that are not economical with the doller at 75c. If all those oppertions go then NZ will not have enough dollers coming in and will fall over.

[Lias]

While it is nice having it up that high for inports etc you do need to remeber thatthere are also many people kept in work for exporters through opperations that are not economical with the doller at 75c. If all those oppertions go then NZ will not have enough dollers coming in and will fall over.

I thought our main export thesedays was expats to aussie :whistle:

[McDuck]

I thought our main export thesedays was expats to aussie :whistle:

But we damn nere need to pay to have them taken away, we need income....

[jrandom]

Financial advice from an academic American?

See my comments in post #41 regarding Murkn academics.

[McDuck]

I see BNZ new credit card interest rates have dropped a whole 1% to 21.75% how can they justify that?

I borrowed a few grand to help pay for the 400, national have put the intrest rate up by 2%? That didnt make sence, i rang them up and asked them and could not get an answer from them. Sure as hell they will not be getting my buisness for much longer :(

[Brett]

Financial advice from an academic American?

Hahaha...I wonder if they themselves haven't picked up on the irony?

[Swoop]

.... there is a reason why primary industry is called primary industry....
Because most of the people involved only reached that level of schooling???

[McDuck]

Because most of the people involved only reached that level of schooling???

About 32.5%. The rest is because they are industrys that can not be 'moved' overseas, and they use the primary resource, the sun.