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ANZ hikes variable home loan rate, cuts others

Fuseworks Media
Fuseworks Media

Wellington, Aug 9 NZPA - ANZ is raising its variable mortgage rate and is cutting its 18-month, two-year and three-year fixed rates.

The variable and flexi-rate will rise to 6.20 percent from 5.95 percent. The rate for mortgages fixed for six months rises to 6.35 percent from 6.10 percent.

But the fixed 18-month rate falls four basis points to 6.65 percent and the two-year rate falls 15 basis points to 6.85 percent. The three-year rate falls 10 basis points to 7.2 percent.

The bank did not change its one-year fixed rate, which is 6.45 percent. It introduced a 30 month special rate of 6.99 percent. The four and five-year rates are also unchanged.

ASB Bank was the first bank to hike home loan rates since the 25 basis point lift in the official cash rate to 3 percent on July 29.

ASB lifted its floating home loan and six-month fixed mortgage rate by 25 basis points, the floating rate rising to 6.25 percent.

A surprisingly large rise in the unemployment rate in the June quarter last week put pressure on the Reserve Bank of New Zealand to stop hiking interest rates.

Many economists believe the central bank will hike the official cash rate once more at its next policy review on September 16, then pause.

Some question that scenario and predict the monetary policy tightening from historic lows begun in June is now on hold.

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