Cullen wrong again

Mortgage interest rates go up again – 28 Feb 2008 – NZ Herald: New Zealand National news

Michael Cullen is fond of saying the sub-prime crisis won’t affect New Zealand yet today we have two stories where the effects are being felt up close and personal.

ANZ National is raising its mortgage rates in response to “severe” market conditions. That is bank speak for “Faaaaaaaaark, its hard”. Just in case someone in Cullen’s office is reading this check out this little gem and then pass it on to the failed history lecturer.

Changes in world credit markets since the US “sub-prime” crisis last year have led to a sustained increase in the cost of the funding banks use to meet their lending requirements, ANZ National Bank said yesterday.

“Wholesale rates have increased by 20 basis points in February alone,” its statement said. “We have been able to protect customers from the impact of these most recent increases, but this week’s changes reflect the severity of the global credit environment of which New Zealand is a part.”

See that, “the global credit environment of which New Zealand is a part”. Got it fool. Right carry on.