Since the OCR increase last week we have seen a lot of lenders increase their floating rates. However the banks who are yet to moves include BNZ, HSBC, SBS and Westpac. There is now a wide range of floating rates as you can see here where the table is sorted from lowest to highest rate.
Westpac's commentary this morning was interesting saying the Reserve Bank's central projection implies another 100 basis points of hikes this year – that is, another four hikes over six remaining review dates – and looks to be heavily front-loaded. "That supports our prior view that the OCR will be increased at the next three reviews in April, June and July, with further hikes from December onward," the bank's economist say.
However, financial markets aren’t completely sold on the case for five hikes this year (and they still aren’t, currently pricing in another 88bps by year-end).
| « ANZ first out of the blocks | Rate rises moving to fixed rates » |
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