Borrowers hoping (and savers fearing) that this Thursday's OCR cut might push retail interest rates lower may be left hanging by banks who have taken their foot off the mortgage lending accelerator and are instead keener on term deposits.
As the debate around the housing market and the potential need for a Debt to Income (DTI) multiple restriction burbles along in Wellington, the CEO of the bank with the biggest exposure to the housing market has weighed in with a few warnings to new rental property investors and the Reserve Bank.
For the convenience of subscribers, here's my weekend column in which I argue the Government should help break the lending drought threatening the Auckland housing building boom by focusing KiwiSaver HomeStart on funding new builds.
Auckland property developers report banks pulling back from lending for new apartments and sections in recent weeks, potentially frustrating the Government's hopes for a 50% increase in privately-funded residential construction there over the next 18 months.
The Reserve Bank has just released its unscheduled 'Economic Assessment', including a warning the currency's sharp rise since June 9 was making it difficult for the bank to meet its inflation targets and that a further easing in monetary policy was likely.
Good morning all.