Floating rates rise after official cash rate increase
New Zealand banks, including Westpac, are raising floating interest rates following a 25-basis-point increase in the Official Cash Rate (OCR) to 2.75%. While most home loan customers remain on fixed rates, the move signals a broader trend of rising borrowing costs.
Why it matters
Rising interest rates directly impact consumer spending power and the housing market, reflecting the central bank's efforts to manage inflation.
Banks have started to move their floating rates, after Wednesday's official cash rate increase.
Westpac says it is increasing variable interest rates for borrowers and some savers, after Wednesday's increase to the official cash rate.
The OCR was lifted by 25 basis points, to 2.75 percent.
Westpac's variable home and business lending rates will increase by 0.25 percent, effective Monday for new customers and Thursday for existing customers.
Its Bonus Saver and Business Online Saver, will also increase by the same amount from Monday.
"New Zealanders have shown resilience in the face of cost pressures and uncertainty, and our data suggests they remain well-placed to manage further rate rises," said managing director of product, sustainability and marketing, Sarah Hearn.
"Most of our home loan customers are on fixed rates and there are no changes for them today.
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