The Reserve Bank has indicated it expects to keep the OCR on hold until mid-2021, given the balance of risks it sees around the growth outlook.
Inflation remains contained close to 2%, and economic growth is moderating. Offshore volatility is keeping the Reserve Bank cautious as to when it tightens monetary policy.
NZ Institute of Economic Research (NZIER) expects the central bank to raise the OCR from mid-2020 because they believe that inflation will pick up at a faster pace.
I noticed that most economists say that interest rates are NOT likely to go up in the next 18-24 months. Therefore, I would personally be OK to re-fix the mortgage for 1 or 2 years taking advantage of the lowest possible interest rate.
HSBC currently displays home loan offer: 3.69% p.a. fixed for 2 years. I’m sure some other local banks could match if you have enough deposit and good serviceability.
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