A non-major bank has increased its longer term fixed rates, following recent rate hikes by majors ASB and BNZ.
The Co-operative Bank is the latest bank to increase its mortgage rates, after ASB and BNZ recently made changes.
The Co-operative Bank raised its 3 year fixed rate by 20 basis points to 4.79%; its 4 year fixed rate by 10 basis points to 4.99%; and its 5 year fixed rate by 20 basis points to 5.19%.
Speaking to NZ Adviser, the Co-operative Bank chief executive Bruce McLachlan said the changes were purely in response to the major moves in swap rates last week.
“Markets have been volatile post the US election, and now have some more news to digest as well.
"We believe interest rates are going to take their guidance from overseas events, and many international markets have seen a real steepening in their yield curves," McLachlan said.
“We are not seeking to send any greater signal other than this is what is reflected in prices on international markets. We all need to get use to this.”
The Co-operative Bank raised its 3 year fixed rate by 20 basis points to 4.79%; its 4 year fixed rate by 10 basis points to 4.99%; and its 5 year fixed rate by 20 basis points to 5.19%.
Speaking to NZ Adviser, the Co-operative Bank chief executive Bruce McLachlan said the changes were purely in response to the major moves in swap rates last week.
“Markets have been volatile post the US election, and now have some more news to digest as well.
"We believe interest rates are going to take their guidance from overseas events, and many international markets have seen a real steepening in their yield curves," McLachlan said.
“We are not seeking to send any greater signal other than this is what is reflected in prices on international markets. We all need to get use to this.”
