Markets, Mystics & Mayhem podcast: Ep17

Published on 04 February 2025

This week we take a look at the mortgage book across Aotearoa. In anticipation of further rate cuts from the RBNZ the book has shortened up with 81% of borrowers fixing for one year or less. It’s a gamble that’s paying off. Naturally, the question now turns to when borrowers should fix for longer. We give our two cents. The move to shorter-dated rates is also a large driver in why we expect a recovery in the second half of this year. However, the longer-term outlook for growth is inhibited by ongoing kiwi productivity woes. We dive deeper into the Kiwi productivity problem and discuss the causes and solutions to achieve a more productive economy.

To fix or not to fix, mortgage rates in question

MMM episode 17