Kiwibank raises floating rate 20 basis points

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State-owned Kiwibank has raised its floating rate 20 basis points, even though wholesale interest rates have been almost static since before Christmas.

Tuesday, January 27th 2004, 9:46PM

by Jenny Ruth

But rather than profiteering, Kiwibank has been very late in responding to a rise in wholesale rates back in November and its floating rate is still 45 basis points lower than the lowest of the major home lenders.

Kiwibank’s rate rose from 6.55% to 6.75%. Chief financial officer Craig Stewart says Kiwibank constantly monitors both the wholesale market and bank margins. "We held our rate a lot longer than the rest of the market," he says.

Westpac Bank was the first to move back in mid-November, raising its floating rate from 7.10% to 7.25%. Since then, ASB Bank, Bank of New Zealand, ANZ Bank and National Bank have all raised their floating rates to 7.25% while HSBC has raised its floating rate from 7.05% to 7.20%.

Check out when other lenders moved their floating rates on Good Returns Rates Comparison page HERE

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