OCR just one of the many factors that determine bank lending rates, bank exec says
Following the Reserve Bank’s announcement of a double rate hike to 1.5%, ANZ Bank has responded by lifting its mortgage rates.
Read more: RBNZ makes massive rate announcement
ANZ increased its floating and flexible home loan interest rates by 0.5 % to 5.54% and 5.65% per annum, respectively, while business floating and business overdraft base rates will also go up 0.5%.
Ben Kelleher, ANZ managing director for personal banking, said OCR was only one of the many factors, including wholesale interest rates, that determined bank lending rates.
“The global economic response to COVID-19 and geo-political issues, like the war in Ukraine, are driving inflation to levels not experienced in decades,” Kelleher told NZ Herald. “Alongside the OCR move today, we have seen significant increases in wholesale interest rates in recent weeks. This also has an impact on our fixed interest rates for home loans.”
Kelleher encouraged customers who had concerns, or who wanted to talk about their finances, to contact the bank.
“For people who haven't experienced rising interest rates it can be daunting, particularly homeowners who are rolling off low fixed rates when floating and fixed rates are now higher,” he said.
With the Reserve Bank signalling that it is prepared to move faster to head off inflation, homeowners should brace for higher mortgage rates sooner, NZ Herald reported.
