Major bank hikes fixed rates

by NZ Adviser04 Nov 2016
ASB has increased rates across its fixed loans for terms of three years and longer. 

Its 3 year special rate jumped 20bps from 4.39% to 4.59% and its 3 year standard by the same amount from 4.89% to 5.09%. 

ASB's 4 year special rate increased by 30bps, from 4.59% to 4.89%, and its 5 year special rate by the same from 4.79% to 5.09%.

The bank's 4 and 5 year standard rates rose by 20bps to 5.29% and 5.49%, respectively.

The official cash rate is expected to be cut one more time next week, which will bring it down to 1.75% if it happens.  

A Fairfax article reported Massey University banking commentator David Tripe saying the increase in ASB's rates may be an indication that homeowners have seen the best rate deals in this interest rate cycle. 

He said other banks may follow ASB's move. "The only outstanding question is when. Whether they do it prior to the OCR change or leave it til after the OCR change and do it then. That's the only question."
 

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