ANZ does a u-turn on rate increases

The increases were made ahead of last week's OCR announcement where the market expected the Reserve Bank to increase the case rate. However, that increase was put on hold following the discovery of a case of Covid-19 in the community.

The bank is putting its standard one-year fixed rate back to 3.15% after hiking it to 3.29% last week,.

While the RBNZ had been expected to raise its official cash rate, the delta variant of covid-19 surfaced and the central bank remained on hold. Wholesale rates have also tumbled in the wake of the delta outbreak.

ANZ also reversed 10 basis point hikes to its standard 18-month and two-year fixed rates, as well as a 14bp hike to its special one-year rate and 10bp hikes to its special 18-month and two-year rates.