New Zealand's transition to shorter-term fixed interest rates, looks set to pay off

Shorter-term interest rates are expected to keep falling, after the Reserve Bank signalled more cuts to the OCR, sooner than expected.

But longer-term interest rates continue to be driven by international factors.

Assistant Governor Karen Silk says thankfully, many people are now on shorter terms, with about nine in ten new mortgages being fixed for one year or less.

She says the proportion of mortgages being fixed for short terms, is very high.