News - 20 December 2006

The team at Alpha Financial Solutions Ltd wish you all a safe and restful holiday season.

We thank you for your business in 2005 and look forward to helping you again in the New Year.

Our offices will be closed from 23 December 2005 until 9 January 2006. If you have an urgent enquiry, call Stuart on 021 676 747.

Interest Rate and Currency Comments

As predicted, the Reserve Bank raised the Official Cash Rate on December 8th by 0.25% to 7.25%. However, the language attached to the announcement was not as stern as in previous months, signaling that rates are perhaps at their peak. Bank floating rates have risen by 0.25% or 0.30%, with 1 year rates also rising in sympathy. Longer term fixed rates have stabilised, after a period of substantial rises in the past 2 months.

Going forward, interest rates are more likely to stabilise and then return to the longer term trend of lower short term rates and higher longer term rates. Timing of these moves is the big unknown!

Call me NOW to find out what you can do in this rising interest rate market!!!

The kiwi has taken a big drop over the last week or so, after the Reserve Bank announcement. Whilst commentators agree that this trend should continue as our interest rates begin to decline, there are still some influences holding rates up in the short term. Volatility is the name of the game for the next 2 months or more!

(See below for latest interest and exchange rates).

Food for Thought

You can't climb the ladder of success with your hands in your pockets!

Problem Profile

No Problems this newsletter, just a Very Big THANK YOU to everyone who has supported the growth of my business over the last year (and more). It has been a year of changes, a year of discovery, and a year of continued improvement in all aspects of the business.

With a relocation to new premises in 2006, new staff, and a clearer direction of how Alpha Group should grow, I'm looking forward to the coming year to be another milestone - onwards and upwards!

The Finance Markets

As of 8am on Monday 20 December 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.59% (down slightly)
5 year bond rate 5.84% (down from 6.10%)
NZ/US Dollar 0.6813 (down from 0.6885)

Current Range of Interest Rates for home and investment mortgages as at 20 December 2006.

Floating:
8.50 to 9.55% (stable)

Fixed For:
1 Year - 8.45% to 8.50% (stable)
2 Year - 7.75% to 9.25% (stable)
3 Year - 7.75% to 9.15% (stable)
4 Year - 7.99% to 8.35% (stable)
5 Year - 7.90% to 8.65% (stable)

For a complete table of interest and exchange rates, click here.

The information stated herein was correct at the time of release, but is subject to changes without notice.