NZ mortgage interest rates will fall below 2% - fund manager

Fri, 26 Jun 2020

Interest rates are likely to fall further and mortgage interest rates will soon fall below 2 percent, according to Fergus McDonald, head of bonds and currency at Nikko Asset Management. "I still think there will be a further round of mortgage rate reductions," McDonald said on a webinar. "Banks are awash with cash and they can borrow as much as they like from the Reserve Bank at 0.25 percent," he said. "However, they're having trouble lending in any volume." McDonald pointed to government measures aimed at cushioning the economy thr...

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