The Bank of New Zealand will raise its floating mortgage rate to 7.25 per cent from 7.10 per cent.
Tuesday, December 9th 2003, 7:02AM
by The Landlord
BNZ said the increase would affect about one third of its residential mortgage customers, taking effect tomorrow for new customers and on December 23 for existing clients.
The rise reflected an increase in 90 day bill rates, which had climbed 21 basis points since late July, the bank said.
Westpac raised its floating loan to the same level in November.
Last week the Reserve Bank decided not to raise its official cash rate from its current 5.00 per cent but signalled that the hot housing market and other inflationary pressures would probably lead to increases next year.
