The flood of bonds into
the New Zealand financial markets has created investor
interest as bank deposit rates fall. Business Editor Dene
Mackenzie finds that not everyone is enamoured with the
Home mortgage rates continued moving around yesterday with
the most competition in the floating rate.
The Reserve Bank shaved another 0.5% off the official cash
rate yesterday, which was not as much as some expected but it
still triggered an early response from retail banks.
The Queenstown Lakes district suffered the largest fall of
median house prices in the 12 months ended February, but Real
Estate Institute spokesmen say the fall is nothing to be
House sales rose sharply in February, reflecting the usual
bounce after the holiday period, but ASB economist Jane
Turner warned not to read too much into the latest figures.
Business confidence remains low but there are encouraging
signs that the worst of the residential real-estate slump is
over, the latest BNZ confidence survey shows.
Listed banks are back in
the spotlight after the Bank of England cut its central
lending rate to 0.5% and began a further easing programme
through "printing" around 75 billion ($NZ213 billion) to
purchase bonds from high street banks.
The housing sector is expected to remain under considerable
pressure despite the dramatic drop in interest rates, ASB
economist Jane Turner says.
Private equity funds have proved popular with investors, with
Direct Capital and ABN Amro Craigs raising $82.5 million for
their Pohutukawa II fund, including $22.5 million of
Books, as in real books, seem to be making something of a
comeback but not in a conventional way
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