Kiwibank has put on its tramping boots and joined the latest hiking movement, announcing hikes in its fixed mortgage rates this morning by between 9 and 36 basis points (bps). This follows recent moves by BNZ, ASB, Westpac, SBS and TSB. See all mortgage rates here. The latest round of fixed mortgage rate hikes follows a jump in wholesale rates, with markets picking the Reserve Bank of New Zealand will have to raise the Official Cash Rate from its record low of 2.5% earlier than 'the latter part of 2010'. This is partly down to an official rate hike by the Reserve Bank of Australia earlier this month and also higher than expected inflation figures for New Zealand in the September quarter. Kiwibank raised its six month mortgage rate by 30 bps to 5.75%; one year by 36 bps to 5.95%; 18 month by 24 bps to 6.29%; two year by 26 bps to 6.95%; three year by 10 bps to 7.79%; four year by 24 bps to 8.49%; and five year by 9 bps to 8.69%. At the same time, Kiwibank cut its revolving credit rate by 14 bps to 5.65%. The new revolving credit rate is effective immediately for new customers and from November 4 for existing customers.
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