The move was due to movements in the wholesale cost of funding, the bank says
New Zealand’s largest bank is lifting the interest rate on two of its shorter-term home loan offers.
ANZ is raising its standard one-year rate by 16 basis points to 5.75%, while its special rate for borrowers with more than 20% deposit will be increased by the same margin to 5.15%.
Read more: ANZ to raise home loan rates as funding costs rise
ANZ also said it is increasing its 18-month rates by six basis points, its standard rate to 5.95%, and its special 18-month to 5.35%, Stuff reported.
The increase was due to movements in the wholesale cost of funding, the bank said.
Interest rates have risen significantly over the past year as central banks around the world attempted to combat surging inflation.
Read next: House prices can fall further – ANZ
New Zealand’s OCR is tipped to increase to a peak of about 4%, from the current 3%.
Some forecasters said, however, that interest rates paid by borrowers may not have further to rise as much of that hike has already been priced in, Stuff reported.
