OPINION: Let’s face it, New Zealand has underinvested in ourselves, our economy, and our potential. Interest rates on interest-only and investor mortgages would increase, and enable lower interest rates on first-home buyer and owner-occupier mortgages. More specifically, SME business lending risk weights need to be lowered as well, to help stimulate real investment in the economy. To encourage investment, SME business need the confidence to expand. The Reserve Bank could slash the risk weighting on SME debt to both increase the finance available, and lower the cost (interest rates) of SME investment.

Source: Stuff March 30, 2021 15:56 UTC