What could Brexit mean for your mortgage?
July 08, 2016 at 4:42 PM
Interest rates are expected to stay lower for longer as the global economy and financial markets absorb the impact of the Brexit shock.
Mark Lister, of Craigs Investment Partners, said the Reserve Bank could cut the official cash rate below 2 per cent from 2.25 per cent.
"There's a good chance that they cut now in August and cut more aggressively," Lister said.
Lower rates could pour fire on an already heated property market, an outcome the Reserve Bank will be keen to avoid as it juggles conflicting economic pressures - namely rising house prices, stubbornly low inflation and a strong kiwi dollar.
However, Lister said heightened volatility in financial markets may increase banks' funding costs. That could mean mortgage rates don't go lower even if the OCR is cut, he said.
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