NZ’s biggest bank increases mortgage rates amid ‘global uncertainty’
New Zealand's ANZ bank is raising fixed mortgage and term deposit rates, citing increased wholesale funding costs due to global uncertainty. The bank notes that rising interest rates in global markets, influenced by Middle East conflicts, are driving these local adjustments.
Why it matters
Higher mortgage rates directly impact the cost of living and household disposable income for New Zealand homeowners.
ANZ says the changes reflect a broad increase in wholesale interest rates. Photo / RNZ, Nate McKinnon
ANZ says it will increase a number of its fixed home loan and term deposit interest rates.
Managing director for personal banking Grant Knuckey said it reflected a broad increase in wholesale interest rates, amid continued global uncertainty.
One-year swap rates have risen from just over 3% at the start of July to 3.43%.
Two-year rates have lifted from 3.36% to 3.7% over the same period.
“Banks get their funding for lending from a variety of sources, including borrowing from global wholesale markets. When global uncertainty pushes up those funding costs it puts upward pressure on lending interest rates including home loans,” Knuckey said.
“Wholesale rates have increased significantly in recent months amid uncertainty surrounding the conflict in the Middle East, making offshore funding more expensive.
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