Westpac's fixed rate changes today comprise a 10 basis point increase to its 18-month rate, a nine point increase to its three-year rate and 25 and 24 basis point increases to its four and five-year rates respectively. These changes now make its three to five year rates above the median for major banks.
Credit Union Baywide has dropped its floating rate by 55 basis points this morning to 5.85%. Its now tied with NZ Home Loans, Silver Fern and Sovereign offering the best floating rate for non-bank lenders in our table and well below the median floating rate for all lenders. CU Baywide also made a 20 point increase to its one and two-year fixed rates and upped its three-year rate by 30 points to 7.85%.
The recent Reserve Bank monetary policy statement and unfolding economic events have got the economists reviewing their interest rate predictions. ASB has now ditched its calls for a cut to the OCR and replaced them with a warning, the only way rates will go is up, and they could go up in 50 basis point steps. Also wholesale markets are now pricing in interest rate hikes in June/July next year, not the end of the year as the Reserve Bank suggests. Find out more about where economists think interest and mortgage rates are heading here.
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