Banks Hike Mortgage Rates Amid Tightened Trade Surplus

The major New Zealand banks have increased their floating and savings rates for mortgage holders. ANZ, Westpac, Kiwibank, ASB, and BNZ announced the rate hikes on Thursday.

The Reserve Bank of New Zealand's (RBNZ) OCR boost has led to a rise in wholesale swap rates and commodity prices have slipped globally, but the New Zealand dollar remains relatively stable.

New Zealand's trade surplus tightened significantly due to rising imports, which almost wiped out the deficit. The country's terms of trade also worsened by 9% mainly due to increased fuel costs.