SUMMARY: RBNZ says mortgage rates change with official interest rates, but this takes time

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Reserve Bank of New Zealand: * MORTGAGE RATES MOVE WITH OFFICIAL INTEREST RATES BUT IT TAKES TIME

* ANALYTICAL NOTE SHOWS THAT A 1% CHANGE IN OFFICIAL MONEY RATE TYPICAL INCREASES THE AVERAGE TWO-YEAR MORTGAGE RATE BY 0.34% OVER ONE MONTH. * FORECAST OF MONETARY POLICY CHANGES INCREASES OVER TIME, WITH A PEAK IMPACT ON MORTGAGE RATES OF APPROXIMATE 6 MONTHS AFTER OCR CHANGE

* HOUSEHOLD LOAN IN THE FORM OF A MORTGAGE IS APPROXIMATELY 43% OF BALANCES OF A COMMERCIAL BANK, BIG PART OF ALL LOAN FUNDS NEW ZEALAND * SMALL BANKS SHOWING PASSING ON OCR CHANGES BIGGER THAN BIG BANKS

* RESEARCH ALSO DETECTED PRELIMINARY EVIDENCE THAT SOME BANKS ACCEPT MORE OFFICIAL INTEREST RATE CHANGES THAN OTHERS * IN RESEARCH, PLEASE MAKE SURE THE MODERN OCR PROCEDURE UP TO 2 YEARS MORTGAGE RATE IS ONE

* THE IMPACT OF A CHANGE IN OCR ON LONG AND UP TO 2 YEAR MORTGAGE RATES INCREASES IN THE AVERAGE TERM, WHERE THE PEAK EFFECTS IS PRODUCED AFTER 6-7 MONTHS. Further company coverage:

(This story was not edited by Devdiscourse staff and was automatically generated from a syndicated feed.)

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