The rate rise reaction to the Wednesday, October 5, 2022 RBNZ OCR hike has been slow.
Only the ANZ reacted in a timely way, but still two full days later, passing on the full +50 bps to borrowers, and passing on a lesser +40 bps to savers.
Nearly a week later, more banks are finally making their moves. It has been a much slower response than we had expected.
Westpac is the next bank to raise rates, with their floating rate up by the full +50 bps. For existing clients it will be effective on Wednesday, October 26, 2022.
At the same time they have raised their fixed rates, all by +10 bps except their one year rate which stays at 5.45%.
Westpac have also raised both their Bonus Saver and Notice Saver rates by +50%. This rise will be effective Wednesday, October 12, 2022.
And they have raised all their term deposit rates for terms out to 18 months. This takes their six month rate up to 3.60% (+30 bps) and matching many others. It also takes their one year rate to 4.20% (+10 bps), also matching rivals.
Update: ASB has now announced its increase, also +50 bps and matching ANZ. But ASB has raised its Savings Plus by +55 bps on a "full bonus" basis. It has raised its Headstart account rate by +50 bps, and its On Call account by +50 bps. Their Savings Plus bonus interest changes will be backdated to apply from 1 October 2022. All other personal savings rates take effect from 25 October 2022.
In addition it has added +50 bps to its five month term deposit rate taking it to 2.75%, and +30 bps to its nine month rate to 4.00%. (These two rates are updated again after an error in the ASB announcement.)
Further update: BNZ has announced their rise as well, which will be effective for existing borrowers on November 2, 2022. They made no savings account changes with this announcement.
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 | 3.00 | +50 | 3.50 | 5 October 2022 |
| ANZ | 6.84 | +50 | 7.34 | 25 October 2022 |
| ASB | 6.84 | +50 | 7.34 | 25 October 2022 |
| BNZ | 6.79 | +50 | 7.29 | 2 November 2022 |
| Kiwibank | 6.50 | +50 | 7.00 | 31 October 2022 |
| Westpac | 6.85 | +50 | 7.35 | 26 October 2022 |
| Cooperative Bank | 6.65 | +50 | 7.15 | 1 November 2022 |
| Bank of China | 5.45 | |||
| China Construction Bank | 6.50 | |||
| Heartland Bank | 4.99 | |||
| HSBC | 6.79 | |||
| ICBC | 6.00 | |||
| SBS Bank | 6.79 | |||
| TSB | 6.75 |
We will separately report the fixed rate increases when some arrive.
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