October rate increases to follow recent moves

The Co-operative and Kiwibank became the latest lenders to raise rates in the past few days.

Kiwibank made its second increases in a fortnight, while The Co-operative raised rates across the board on six month to five year mortgages.

The challenger banks followed the big four, all of which have lifted their fixed rate pricing in recent weeks. Some have lifted rates by more than 30 basis points. 

Borrowers have felt the pinch this month as banks react to increases in the wholesale markets over the course of 2021. Investors in those markets have priced in official cash rate increases for the next three Reserve Bank meetings.