ASB and Sovereign have increased their floating and six month rates by 25 basis points each. Their floating rates go to 6.25% and 6.35% respectively and six month rates to 6.35% and 6.50%. However they are dropping rates for two years or more between five and 15 basis points.
It will be interesting to see what action the other lenders take now ASB has broken the ranks.
In news, the Reserve Bank's statement accompanying the OCR increase last week has scattered the forecasts of economists and the BNZ Weekly Overview says analysis falls in favour of fixing two or three years.
We also have further analysis of the OCR increase.
In latest trends a graph shows the yield curve is starting to show signs of flattening out as a result of considerable cuts to long-term fixed rates recently and the increases we saw to floating rates in June.
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