August Update from our Chief Executive
31 Jul 2015
So how does that affect you?
As you will be aware the Reserve Bank is trying to stimulate the economy by continuing to cut the Official Cash Rate and therefore the cost to borrow. When only looking at the Auckland property market, reducing interest rates, which may stimulate further borrowings, increase the demand for houses and therefore result in even higher house values doesn't appear to be in the best interests of Auckland. However as the Reserve Bank Governor has clearly stated, the New Zealand economy is not all about the house prices in Auckland and the rest of New Zealand needs lower interest rates so individuals and businesses can afford to borrow to invest in productive assets and continue to grow the economy.
So, in the last couple of weeks we have seen banks reduce both home loan and savings and investment interest rates. The reduction in investment rates that the banks are now offering directly affects your Credit Union as we are getting a far lower return on our capital and surplus funds than in the past.
Here at your Credit Union we work hard to deliver fair interest rates for all our members. We too have changed our interest rates. The good news for our borrowing members is our home loan and personal loan rates have reduced. We have also had to reduce our savings and term deposit rates accordingly. All our current Savings Accounts rates are disclosed on the back page of this issue and all our interest rates are available at www.policecu.org.nz.
As always, if you have any feedback, please contact me directly on 04 471 4850 or email email@example.com.