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BNZ hikes interest rates

Published by Mitch | Filed under Interest Rates

BNZ has become the latest major bank to raise fixed mortgage rates in the latest round of rate hikes. However, unlike ASB and Westpac, BNZ left its six month rate unchanged at 5.5 per cent.

BNZ raised its fixed mortgage rates from the 18 month term to five years by between 20 and 40 basis points (bps).

Fixed mortgage rates, spurred by wholesale rates, are rising again as markets predict the Reserve Bank of New Zealand will have to raise the Official Cash Rate earlier than ‘the latter part of 2010′.

Statements from the Reserve Bank of Australia have also ignited talk of further quick rate hikes there, with sentiment spilling over to New Zealand markets.

SBS also raised some of its fixed mortgage rates by small amounts today. The one, three and five year rates edged up by between 5 and 10 basis points.