Official Cash Rate hike: BNZ, ASB and Kiwibank lift floating mortgage rates
Major New Zealand banks including BNZ, ASB, and Kiwibank have raised floating mortgage rates following an increase in the Official Cash Rate. The Reserve Bank has criticized these institutions for failing to pass on similar interest rate increases to term deposit holders.
Why it matters
This highlights the tension between central bank monetary policy and retail banking practices, impacting consumer borrowing costs and savings returns.
In its Monetary Policy Statement, the Reserve Bank criticised banks for not passing on increases to term deposit rates. Graphic / RNZ
BNZ, ASB and Kiwibank have become the latest banks to move on interest rates, after the Official Cash Rate was increased on Wednesday.
Westpac and ANZ increased some of their interest rates on Wednesday afternoon.
On Thursday, Kiwibank said it was increasing its variable home loan rate and offset variable rate by 25 basis points, to 6.25%.
Its revolving loan rate increases from 6.05% to 6.3%.
It is also passing on increases to savers, but to a lesser degree.
Its 90-day and 32-day notice saver rates lift by 15 basis points, to 2.75% and 2.2%, respectively.
Its standard online call, PIE online call and business online call interest rates are also lifting by 15 basis points.
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