Interest is the price that borrowers pay to obtain capital. This graph compares the changing interest rates of first mortgages for house loans with the interest the banks pay those who invest in a six-month savings bond. In general the difference between the two rates is what the bank earns. It was about 2.5% through this period. The rise in rates from the early 1970s to the late 1980s represented the period of general price inflation in New Zealand.
Te whakamahi i tēnei tūemi
Te Ara - The Encyclopedia of New Zealand
Source: Reserve Bank of New Zealand
This item has been provided for private study purposes (such as school projects, family and local history research) and any published reproduction (print or electronic) may infringe copyright law. It is the responsibility of the user of any material to obtain clearance from the copyright holder.