Inflation data has been released today. As at today, the annual rate of inflation is 6%.
Encouraging signs when looking through the prior annual rate of inflation in the previous two quarter which was 7.2% in December 2022 and 6.7% in March.
Domestic inflation is sticky with major contributors such as food, housing and rental.
Next question?
It is too early to say whether the re-instatement of the fuel tax could make an impact on the cost of living.
As we all know, these cost can be passed down and making it tougher to drag the inflation level back to the target range of 1% – 3%.
Some economist have signalled a potential rise in the OCR later this year, to tame the inflation further.
If there is another rise, this could be passed to the borrowers and hurt them more.
Next 3 months is crucial for borrowers with their fixed term expiring.
Let’s give you a snapshot:
Borrow | Interest rate | Repayment | Current Interest Rate | New Repayment |
500,000 | 2.99 | $971 | 7.19 | $1,562 |
700,000 | 2.99 | $1,359 | 7.19 | $2,187 |
900,000 | 2.99 | $1,748 | 7.19 | $2,812 |
1,100,000 | 2.99 | $2,136 | 7.19 | $3,437 |
What can you do?
- Consult with your family and whānau, review your current budget and future financial goals.
- If you have fixed terms expiring in the next 90 days, don’t wait, act now. It could benefit you.
- If you don’t have fixed terms expiring soon, it doesn’t cost you to check-in with us.
- You could have an existing loan structure, you may not be aware of how the account works, we can make you knowledgeable.
Use our calculator to make it easier and engage SK Financial Group to discuss about your current situation and future financial goals.
Disclaimer: The article should not replace or used as a substitute for personalised financial advice. It is recommended that you seek independent financial advice based upon your needs, goals, and situation. SK Financial Group and their employees cannot be held accountable to the information in the article. Indicative interest rates have been used from external websites; we are not responsible for accuracy of data. Please check our disclosure statement on our website for full information, alternatively you can contact us for full disclosure, terms, and conditions.