Banks compete on short-term interest rates123RF Long-term interest rates are more affected by international movements. Banks are lobbing shots at each other with cheap short-term mortgage rates, but don't take it as a sign of further cuts to come. Short-term interest rates are affected most closely by the Reserve Bank. The expectation was still that interest rates would increase over the next year or two, he said. "That will help anchor short-term mortgage rates at historically low levels.

Source: Stuff February 13, 2018 01:07 UTC