ANZ First Major Bank to Hike Home Loan Rates After OCR Increase

New Zealand's largest bank, ANZ, has become the first major lender to raise its home loan interest rates following the Reserve Bank's OCR hike. The Reserve Bank increased the Official Cash Rate (OCR) by 25 basis points to 2.75%, marking its second consecutive increase since July.

ANZ announced that its floating home loan rate would rise from 6.04% to 6.29%, while its flexible home loan rate would increase from 6.15% to 6.40%. The bank's business flexible facility rate would also rise by 0.25% to 6.29%.

The changes will take effect for existing customers from September 23, and the new floating home loan rate will apply to new loans from September 9. ANZ has also increased several savings rates, including its online account, PIE fund call option, and business premium call account rates by 0.05% to 0.50% from September 9.

The bank stated that interest rates would continue to be reviewed in response to international and local market conditions, considering factors such as the impact on customers, wholesale rate movements, and competitor activity.