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% (although this is still above Westpac's 5.39%). (Update 1 includes SBS rate changes.) BNZ raised its fixed mortgage rates from the 18 month term to five years by between 20 and 40 basis points (bps). Here are the rate changes: BNZ raised its Classic 18 month rate by 20 bps to 6.59%; standard two year rate by 40 bps to 7.2%; three year by 20 bps to 7.95%; four year by 25 bps to 8.5%; and five year by 15 bps to 8.75%. See and compare all mortgage rates here. 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 on Tuesday: It raised its one year rate by 10 bps to 6%; three year by 5 bps to 7.8%; and five year by 5 bps to 8.7%.
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