ANZ Boosts Floating Home Loan Rates Amid OCR Hike

ANZ Bank New Zealand (ANZ NZ) is adjusting its floating home loan and savings rates in response to the Reserve Bank of New Zealand's decision to raise the Official Cash Rate (OCR) by 25-basis points to 2.75%. The OCR increase was in line with market expectations, according to ANZ NZ Managing Director for Personal Banking Grant Knuckey.

The bank is increasing its Floating and Flexible home loan rates by 25-basis points to 6.29% and 6.40%, respectively. Additionally, the Serious Saver premium interest rate will also increase by 25-basis points.

Knuckey stated that ANZ NZ considers a range of factors when reviewing interest rates, including the OCR and changes in wholesale interest rates. The bank balances the needs of borrowers and savers to determine its interest rates.

About 92% of ANZ NZ's home lending is on fixed rates, which are influenced more by wholesale rates and expectations of where the OCR is heading next. Despite this, around 85% of ANZ's fixed home loans are on rates below 5%. The bank has helped about 9000 customers into their first home in the 10 months to July this year.