Banks not rushing to pass on OCR increases
Banks have, somewhat surprisingly, been slow to pass on last weeks 50 basis point OCR increase.
Monday, October 10th 2022, 7:46AM
So far ANZ is the only bank which has announced that it is increased some its interest rates following the RBNZ's decision to hike the OCR 50 basis points.
Its floating home loan rate, revolving credit and the Blueprint rate for home builds are going up by 0.50% to 7.34%, 7.45% and 4.58% respectively.
These changes mean ANZ's floating rates are significantly higher than other big banks (see how it compares here where we have sorted the table).
It also means this is the first time any rates have been above 7% since October 2014.
Currently around 90% of ANZ home loan balances are on fixed rates, and there is no change at ANZ to these at this time.
Along with mortgage rates, there are changes in business lending and for savings rates. However, the full 50 basis OCR rate hike has not been passed too savers.
ANZ managing director for personal banking, Ben Kelleher, said with increasing global economic uncertainty and higher inflation, people were feeling understandably nervous.
But he thought they would be in a position to cope with these increases.
“Where possible, people are choosing to stay on top of their debt and save money where they can,” he said.
| « OCR rise makes economist ’wary’ | Households awaiting interest shock in the anti-inflation front line – economists » |
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