Interest Rates Rise Again
October 25, 2022
Borrowers who are worried about the prospect of soaring interest rates could consider splitting their home loans to spread their risk, one mortgage broker says.
Rates jumped significantly at Westpac, ANZ and Kiwibank last week, after Stats NZ revealed that the rate of inflation barely shifted in the latest quarter.
That prompted some economists to revise their predictions of the official cash rate peak to as high as 5.25%.
Loan Market mortgage adviser Bruce Patten said the forecast for interest rates was murky. He said he expected the Reserve Bank to discover it had hiked too much and would have to drop rates when the country went into recession.