Interest Rates Could be Pushed Higher by Debt Crisis

15 September 2011 - Which Way to Pay

Email Article Print Article
    


Interest Rates Could be Pushed Higher by Debt Crisis

The Reserve Bank Governor, Alan Bollard, has said that New Zealandís banks may be forced to hike interest rates if the global financial markets continue to suffer and keeps increasing funding costs, even without a monetary tightening policy.

The official cash rate was held at 2.5% by Bollard today. He said that the gloomy outlook for the global economy has hit lending confidence and money markets across the world have tightened their lending, which will inevitable filter down to local banks.

New Zealandís banks are doing relatively well at the moment, but the biggest challenges will be faced when fees to tap offshore money increase significantly if the current turmoil in the markets does not calm down soon. If these fees do get larger, the banks will be forced to raise deposit and lending rates without any movement in the OCR.

Concerns over sovereign debt in the eurozone along with weak economic growth internationally have led to poor investor confidence. The Reserve Bank said that for local lenders Ďthe indicative cost of long-term funding has increased materiallyí, but lending costs are yet to be affected.

news_12.png
 

PRODUCT RANGES:

CURRENCY EXCHANGE
Compare Foreign Exchange and Currency >>

LOAN PRODUCTS
Compare Loan and Debt Products >>

CARD PRODUCTS
Compare Cards Products >>

MONEY PRODUCTS
Compare Money Products >>

INSURANCE PRODUCTS
Compare Insurance Products >>

We are always looking at simpler ways of controlling our day to day spending , Transaction accounts are the simplest way this can be done .
30 August 2016
Which Way To Pay
As we all want to keep on top of our financial situation , Transaction accounts can do this for you .
Read More >>
Having the stress of money worries hanging over you day in day out is very stressful. Thats why Bad Credit loans could be your answer.
08 August 2015
Which Way To Pay
When it comes to keep being refused by banks and lenders for a solution to clear your debt once and for all . Bad Credit Loans are there to help.
Read More >>
When spending on your reward credit card , many different benefits whilst using this.
14 May 2015
Which Way To Pay
Make sure you get all the rewards you are entitled to with your Rewards Credit Cards.
Read More >>