operative Bank chief executive Mark Wilkshire signals fixed mortgage rate hikes coming ‘pretty soon’
Co-operative Bank CEO Mark Wilkshire warns that fixed mortgage rates in New Zealand are likely to rise soon due to increased volatility in wholesale markets. Geopolitical tensions in the Middle East are cited as a primary driver for the expected 30 basis point increase.
Why it matters
Rising mortgage rates directly impact household disposable income and the broader New Zealand economy.
Fixed mortgage rates could be heading up “pretty soon”, says a New Zealand bank boss, as wholesale interest rates rise on the back of volatility in the Middle East.
Speaking on Early Edition with Ryan Bridge , Co-operative Bank chief executive Mark Wilkshire said wholesale rates were up about 30 basis points (bps) in the past couple of weeks.
“I think banks will have to start passing that on.
“Even though the Official Cash Rate [OCR] was priced in, those wholesale markets have lifted. I expect this to be upward pressure on retail mortgage rates.”
Wilkshire said fixed home loan rates could rise “in that region of 30 basis points”.
“It’s going to have to happen pretty soon.
“Wholesale markets have been very volatile on the back of these conflicts.”
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