Source: Radio New Zealand
The changes bring ASB and Kiwibank into line with all other major banks SUPPLIED
ASB and Kiwibank have become the latest to increase interest rates, on the back of market fears the rising oil prices may push up inflation.
Wholesale rates have lifted since war broke out, even though the Reserve Bank has not yet moved the official cash rate.
Kiwibank is increasing its special one-year rate from 4.49 percent to 4.59 percent, its three-year rate from 5.25 percent to 5.35 percent, its four-year rate from 5.69 percent to 5.79 percent and its five-year rate from 5.79 percent to 5.89 percent.
Standard rates shift by a similar amount.
It is also lifting its term deposit rates by 20 basis points for one year, to 3.75 percent, 10 basis points for two years, to 4.1 percent, and 30 basis points for three- to five-year terms, to 4.4 percent, 4.6 percent and 4.7 percent, respectively.
ASB is cutting its six-month rate and increasing longer home loan terms and term deposit rates.
ASB’s two and three-year fixed home loan rates have increased by 14 and 20 basis points respectively, while the six-month rate is down 10 basis points.
It will offer 4.59 percent for a year, 4.49 percent for six months, 5.09 percent for two years and 5.69 percent for five years.
ASB has also lifted term deposit rates by up to 50 basis points across 12-month to five-year terms, including a five-year rate of 5 percent. Its one-year rate is 3.7 percent, up 20 basis points.
ASB’s executive general manager personal banking Adam Boyd said it was driven by market pricing.
“Wholesale interest rates have remained volatile and continue to trend higher. These movements reflect heightened global economic uncertainty and renewed pressures across global markets. For savers, the same environment means stronger returns, and it’s worth considering how your money could work harder.
“We understand that any increase to home loan rates is significant for households. We encourage customers to talk to us about their situation. There’s no one-size-fits-all answer, and we want to help people find the approach that works best for them.”
Westpac and ANZ announced increases last week.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
