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AMP has this morning cut its variable mortgage rate, but raised all of its fixed rates, barring the six month rate. See all mortgage rates here.

AMP cut its standard floating mortgage rate by 16 basis points (bps) to 6.29%. It raised its one year rate by 35 basis points to 5.95%; two year by 44 bps to 6.99%; three year by 25 bps to 7.7%; four year by 30 bps to 8.25%; and five year by 35 to 8.65%.

AMP left its six month rate at 5.5%.

The move follows hikes on Friday by ASB and Westpac in the latest round of fixed mortgage rate hikes. ASB and Westpac both raised their six-month rates. Fixed mortgage rates are rising again as markets predict the Reserve bank of New Zealand may have to raise the Official Cash Rate earlier than it has previously indicated. The RBNZ said it expected to keep the OCR at or below its current record low level of 2.5% until the latter part of 2010. However, markets are picking a rate hike as early as January.

This speculation has led wholesale interest rates to rise in recent weeks. See here for Bernard Hickey’s video on how swap rates have been rising. The rises follow an official rate hike by the Reserve Bank of Australia earlier this month and higher than expected inflation figures for New Zealand last week.

Tags: AMP, ASB, Interest Rates, Mortgage rates, OCR, Official Cash Rate, RBA, RBNZ, Reserve Bank of Australia, Reserve Bank of New Zealand, swap rates, Westpac

You may also like to read:

• Kiwibank joins the movement, hikes fixed mortgage rates
• BNZ, SBS hike fixed mortgage rates (Update 1)
• Westpac hikes 6 mth, 2 yr mortgage rates; leaves variable unchanged
• ANZ sees more potency for Bollard’s monetary policy as borrowers go short
• Wholesale interest rates rise after RBNZ holds OCR (Update 4)
• Reserve Bank’s monetary policy strengthened as more move to floating mortgages; most in 5 years
• BNZ, TSB hike six month mortgage rates ahead of RBNZ OCR decision
• Opinion: Why Phil Goff and those wanting rate hikes are wrong
• ANZ hikes short term mortgage rates, including 6 month
• Opinion: Why Bollard needs to learn from the RBA and lose his ‘go for growth’ approach

This entry was posted on Monday, October 19th, 2009 at 8:53 am and is filed under Mortgage rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.