Mortgage Rates Daily Commentary
Monday 15 December 2025
ANZ too hikes rates; Kiwibank says the RBNZ stuffed up its communications last week
ANZ has followed Westpac and increased interest rates of terms of 18 months or more. It too blames rising wholesale r rates.
Grant Knuckey, managing director for Personal Banking, said the increases in fixed rates were a response to recent rises in wholesale interest rates.
“Since our last fixed rate reduction on October 17, wholesale interest rates have risen significantly, increasing by 33 to 77 basis points for terms 12 months and longer.”
This follows the Reserve Bank’s latest cut to the Official Cash Rate, when it signalled a pause in the easing cycle, indicating the OCR would remain at 2.25% for the foreseeable future.
“Changes to the OCR affect floating mortgage rates more directly. Changing expectations about future OCR decisions influence wholesale rates, causing fixed mortgage rates to go up or down,” Knuckey said.
In the News Kiwibank is arguing the medicine, lower interest rates, is working to fix the sick economy. (Even though they are now rising).
Interesting, Jarrod Kerr says the RBNZ is "at the centre of some confusion" over interest rates.RBNZ is "at the centre of some confusion" over interest rates.
Here is what Kiwibank is saying.
WestpacTrust drops rates
WestpacTrust has announced it is dropping its interest rate for fixed and capped home loans over two years.
Wednesday, June 14th 2000, 12:00AM
by Paul McBeth
WestpacTrust has announced it is dropping its interest rate for fixed and capped home loans over two years.
WestpacTrust Spokesperson, Jane Anderson, said the decrease follows a flattening of the yield curve which has seen longer term wholesale interest rates fall.
The new rates take effect immediately.
Two, three, four and five year fixed rates will drop between 0.10 percent per annum and 0.20 percent per annum.
Two and three year capped rates will drop between 0.10 percent per annum and 0.15 percent per annum.
Anderson said medium and long term interest rates are falling, and WestpacTrust wants to pass the decreases on to customers as soon as possible.
About three weeks ago WestpacTrust increased its floating rate for home loans along with other major banks by 0.7 percent per annum to 8.8 percent, in response to increases in the Official Cash Rate (OCR) of 0.75 percent by the Reserve Bank.
There has been no change to floating rates.
Paul is a staff writer for Good Returns based in Wellington.
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