Wednesday's third consecutive Reserve Bank 50 basis points Official Cash Rate (OCR) hike to 2.50% has now brought its first response from a bank with BNZ raising their floating rates by +45 basis points to 6.39%.
Other banks are sure to follow soon. Update: Kiwibank have raised their floating rate by +50 bps to 6.00%. ASB also raised their by +50 bps. Further Update: ANZ has raised their floating rate by +40 bps
BNZ did not change any fixed rates (although the Cooperative Bank did trim some of theirs).
BNZ also raised its Rapid Save account by +50 bps to 1.80%. Update: Kiwibank raised its Notice Saver rates by +35 bps, its online call account rate by +30 bps. ASB's Savings Plus account is up by +50 bps. ASB also raised all their TD rates.
After yesterday's OCR hike, wholesale swap rates and other bill and bond rates actually sank. Overnight, the US CPI inflation rate brought an American rate hike at the end of the month of a full +1% into play. And Canada actually pulled the trigger on a full +1% hike. Further, the IMF issued a warning to central banks to not muck about. In the context of the overnight action, yesterday's RBNZ +50 bps now looks tame - and perhaps underdone in advance of Monday's CPI data which will probably come in north of 7%.
A raft of floating rate changes will probably follow over the next few days.
Here is the running tally of bank changes to floating rates which we will update as each announcement is received.
| Floating mortgage rates | Prior rate | change | New rate | Existing customers, |
| % | bps | % | effective date | |
| RBNZ OCR | 2.00 | +50 | 2.50 | 13 July 2022 |
| ANZ | 5.94 | +40 | 6.34 | 2 August 2022 |
| ASB | 5.85 | +50 | 6.35 | 27 July 2022 |
| BNZ | 5.94 | +45 | 6.39 | 1 August 2022 |
| Kiwibank | 5.50 | +50 | 6.00 | 1 August 2022 |
| Westpac | 5.94 | +45 | 6.39 | 1 August 2022 |
| Cooperative Bank | 5.85 | +40 | 6.25 | 3 August 2022 |
| Bank of China | 4.95 | |||
| China Construction Bank | 6.50 | |||
| Heartland Bank | 4.10 | |||
| HSBC | 5.89 | |||
| ICBC | 6.00 | |||
| SBS Bank | 5.79 | |||
| TSB | 5.50 |
We will separately report the fixed rate increases when some arrive.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.