News - 3 April 2006

Interest Rate and Currency Comments

Interest rates have been on a downward trend over the past fortnight, although not as quickly as the currency! Most activity has been in the 2-5 year range, with drops of between 0.05% and 0.20% over the period. There is a large amount of commentary suggesting that the Reserve Bank increased interest rates too far last year and thus will be forced to start cutting them in the second half of this year - maybe even as soon as July or August. Watch this space...

However, US interest rates have done the reverse and 10 year bonds have risen by around 1/4 of a percent over the past month! This does not bode well for our longer term interest rates, so if you are thinking of a 5 year term, think very seriously about locking in current rates now.

What is the best rate for you?? Call me NOW to find out!!!

The momentum of the fall in the kiwi continued last week, however things have stabilised this week, with a slight rise over the past 2 days. There appears to be support (albeit temporary) for the kiwi around 60 cents to the US dollar. The longer term trend remains downward, as higher US interest rates make our currency less attractive.

(See below for latest interest and exchange rates).

Food for Thought

Common sense is not so common!

Problem Profile

Finance for the Tax Man!

With the end of the financial year last Friday, many of you will be off to your accountant with piles of paper to calculate how much money you made and what tax you will have to pay. Then, like most people, you will wonder "where am I going to get that much money from??"

Fortunately, for those who haven't saved it during the year, there are plenty of options to finance those tax payments. Everyone's situation is slightly different, so you need a specialist who can custom make a financing solution to suit your needs. Call me now for such a solution!

Who do you know that pays tax?? Get them to give Stuart a call now on 524 6062 to get a custom designed solution to your tax payment challenges!!!

The Finance Markets

As of 8am on Monday 3 April 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.45% (down slightly)
5 year bond rate 5.78% (stable)
NZ/US Dollar 0.6137 (down from 0.6395)

Current Range of Interest Rates for home and investment mortgages as at 3 April 2006.

Floating:
8.60 to 9.95% (stable)

Fixed For:
1 Year - 7.60% to 8.90% (down slightly)
2 Year - 7.50% to 9.25% (down)
3 Year - 7.45% to 9.15% (down slightly)
4 Year - 7.50% to 8.05% (down)
5 Year - 7.35% to 8.25% (down slightly)

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.