Besides the magnitude of the changes there is another factor which makes the battle intriguing.
Yesterday's increases were to longer term rates, an area banks traditionally find it hard to raise funds in.
In recent weeks most of the competitive pricing changes have been to terms in the four to nine month part of the market.
BNZ changed its rates for three, four and five year term deposits, along with its bonds. The largest increases were to four-year rates which went up a full 75 basis points.
Depending on how much an investor deposits with the bank the rate is between 5.90% and 6.00%.
Its five year term deposit rate, regardless of amount (for sums of $10,000 or more) has gone from 6.00% to 6.50%.
Kiwibank made changes to the same maturates, but by smaller amounts. Its changes were between 25 and 50 basis points.
Its three year rate for $5,000 has gone up 25 points to 5.50%, the four-year rate is up 50 points to 6.00% and the five to 6.50%.
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