Mortgage rates look set to continue creeping higher. 

The cost of two-year wholesale borrowing for banks has jumped from 3.35% to around 3.70% in just four weeks.  

The increase reflects markets pricing in higher inflation, rising global borrowing costs, and expectations the OCR could stay higher for longer. 

Independent Property Commentator Tony Alexander told Mike Hosking it’s primarily a result of domestic factors – with the extra pressure from rates moving up in Australia and the United States. 

He says New Zealand is currently in a mild recovery mode and inflation is unusually high for this point in the cycle, so our monetary policy will be tightened further.  

LISTEN ABOVE 

Mortgage rates look set to continue creeping higher.&nbsp;
The cost of two-year wholesale borrowing for banks has jumped from 3.35% to around 3.70% in just four weeks. &nbsp;
The increase reflects markets pricing in higher inflation, rising global borrowing costs, and expectations the OCR could stay higher for longer.&nbsp;
Independent Property Commentator Tony Alexander told Mike Hosking it’s primarily a result of domestic factors – with the extra pressure from rates moving up in Australia and the United States.&nbsp;
He says New Zealand is currently in a mild recovery mode and inflation is unusually high for this point in the cycle, so our monetary policy will be tightened further. &nbsp;
LISTEN ABOVE&nbsp;

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.The sharpest voice and mind in the business, Mike drives strong opinion,...

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Tony Alexander: Independent Property Commentator on the impact of wholesale borrowing for banks increasing on mortgage rates

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/bb614b5e-ed2d-406d-9177-b4960168e74a/transcript