Interest rates

More and more banks decide to raise interest rates

Three banks have raised their mortgage rates since the release of new inflation data on Tuesday. Photo/NZME

Two other banks raised their mortgage rates again today, which is still bad news for borrowers, while there are positive signs for savers, with one bank offering a 5% interest rate – the highest rate for some time.

Kiwibank and Westpac joined ANZ in raising mortgage rates today. Kiwibank raised its six-month to five-year rates by 40 to 50 basis points.

Its one-year special fixed rate (for those holding at least 20% equity) is now 5.89%, down from 5.39%, while its two-year rate is now 6.15%, against 5.65%.

Those with low deposit/low capital will pay even more with all rates set for two years or more now above 7% at Kiwibank. The two-year rate is 7.15%, down from 6.65%.

Westpac increased its fares by 44 to 54 basis points. His one-year special home loan is now 5.99%, while his two-year fixed home loan is 6.19%.

Its standard rates remain below 7% for now, with the one-year rate at 6.59% and the two-year rate at 6.79%.

ANZ raised rates on Thursday citing Tuesday’s inflation figures as well as continued volatility in global markets and a significant rise in wholesale market rates.

Annual inflation came in at 7.2% for the year to September 30, well above the 6.5% forecast by economists and the 6.4% predicted by the Reserve Bank.

This prompted banks to raise their expectations of where the cash rate will now need to rise to reduce inflation, which led to higher mortgage rates.

Banks have also raised deposit rates and today the TSB announced it would pay 5% for a five-year term deposit – the highest current rate for that term.

TSB GM Product and Marketing Joe Bishop says with interest rates rising across the board, he wants to give his customers options and incentives to grow their savings and feel secure with their financial goals. .

“As a 100% Kiwi-owned bank we put our customers first, we pride ourselves on offering the most competitive rate among banks in the market.

“We offer a range of other competitive term deposit rates, giving our customers the flexibility to choose what suits them best.”

The TSB is also committed to beating any fixed home loan rates announced nationally by ANZ, ASB, BNZ and Westpac, Bishop said.

ANZ raised rates on Thursday with hikes of between 15 and 75 basis points, although most were only up 25 basis points – significantly less than mortgage rate hikes. Its five-year rate rose only 15 basis points to 4.55%.

Westpac only increased its deposit rates by 10 to 20 basis points. Its five-year rate rose 20 basis points to 4.7%.

While Kiwibank rates increased between 5 and 35 basis points. It did not announce a five-year rate, but raised its four-year rate by 5 basis points to 4.35%.