Floating mortgage rates too high: Reserve Bank

The Reserve Bank is reiterating floating mortgage rates are too high.

The bank has today released an analysis of retail banks'; interest rate margins.

The report says their fixed mortgage rates are, on balance, reasonable, but floating rates appear unusually high. The Reserve Bank says it believes there is scope for further reductions in floating rates, but does not say by how much.

It says it is continuing to talk to retail banks to clarify recent trends in their funding costs and margins.

- NEWSTALK ZB