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..."

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!

[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!

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