Reserve bank warns of potentially stressful impact of potential interest rate spikes

Record low interest rates have been helping many first home buyers claw their way onto the property ladder, but mortgage rates aren't expected to stay low forever.

Mortgage analyst Jose George told 1 NEWS "The interest rate environment is that has been around for the last few years is definitely turning.

"I believe first home-buyers will be vulnerable to managing their budget."

The government is also concerned and have been asking the Reserve Bank just how borrowers will cope when the rates rise.

A Reserve Bank email to the government in January warned that if rates were to rise to 7.5 per cent a typical first home buyer in Auckland could be spending around 70 per cent of their income on housing costs.

While the percentage for first home buyer's outside Auckland would be around 50 per cent.

Greens co-leader Metiria Turei said "It's a real concern, the Reserve Bank is very worried about these first home buyers buying into the market because they are concerned about house prices growing, and the high levels of debt.

"The Reserve Bank is also saying it could mean families have to cut back on essentials like food and power."

Finance Minister Steven Joyce told 1 NEWS, although he expects rates to increase, he doesn't predict it will get to those levels.

The Reserve Bank meets on Thursday to consider its official cash rate.

While a hike isn't likely this week, economists believe a rate rise is definitely on the way.

As the Reserve bank warns of rising mortgage rates could see Auckland home buyers spend 70 per cent of income on housing costs. Source: 1 NEWS

Woman dead, two other people critically injured in Christchurch stabbing

One woman is dead and two people are in a critical condition after a stabbing in Christchurch.

Police were called to a stabbing on Ilam Rd in Christchurch. One woman was killed and another man is in critical condition.
Source: 1 NEWS

Police were called to Ilam Road at 7.50pm on Saturday.

Detective Senior Sergeant Scott Anderson said a man and woman were stabbed by another man, who then turned the knife on himself.

He says those involved were known to each other.

Police are not seeking anyone else over the incident.


Little South Auckland town celebrating their own female pioneers

Next week will mark 125 years since women in New Zealand won the right to vote.

As the country prepares to mark the historic day, a little town south of Auckland is celebrating their own female pioneers.

The residents of Pukekohe say women’s suffrage is about the lasting inspiration it gave to those who followed.

Hundreds turned out today to show their appreciation and remembered those like the woman who started a female fitness club in 1913 or ran for president of the RSA.

Pukekohe's not the only town making big noise this year, a number of towns up and down the country are expected to hold events like this, ahead of next Wednesday's 125th celebration.

Hundreds will join Prime Minister Jacinda Ardern in Auckland’s Aotea Square for a sunrise salute to those who made the women’s vote and countless other everyday tasks possible.

Pukekohe turned out to celebrate their own as New Zealand gets set to mark 125 years since women’s suffrage. Source: 1 NEWS


Police appeal for sightings after man found dead on Auckland road

A body has been found on an Auckland road after being hit by a vehicle, but police believe the man may have already been deceased before the incident.

Police car generic.
Police car generic. Source: 1 NEWS

Police were called to the scene on Popes Road, Takanini, at 7.20pm after reports that a pedestrian had been hit by a car.

Police say initial indications are that the man was already deceased on the road when hit by the driver who contacted emergency services.

Police are investigating and no further information is available at this time.

Anyone who saw a man wearing a red checkered shirt and jeans hitchhiking along Popes Road earlier this evening has been advised to contact Papakura Police on 09 295 0200.

Boy, 4, found dead in sewage pond after going missing from West Coast farm

A four-year-old boy has been found dead in an effluent pond after going missing from a West Coast farm today.

Police received a report Reuben Nolan had disappeared from a farm in Hari Hari, West Coast, just before 1.30pm today.

Police, local volunteers, family, neighbours and friends joined the search for the boy, whose body was found in an effluent pond at 4pm.

Police would like to extend their condolences to the family for their loss.

Reuben's death will be referred to the Coroner, and his family is being assisted by Victim Support.

Police (file picture).
Police generic Source: 1 NEWS