NZ Banks Hike Floating Mortgage Rates Amid OCR Increase

New Zealand's major banks have raised their floating mortgage rates in line with the Reserve Bank's recent 25 basis point hike to 2.75%. The OCR increase, which was widely expected by economists, brings inflation back within the target band of 1% to 3%.

The five largest banks - ANZ, BNZ, ASB, Westpac, and Kiwibank - all lifted their variable rates by 25 basis points. While fixed rate customers will not be affected immediately, experts warn that fixed home loans may also increase in the future due to wholesale rates.

ANZ NZ managing director for personal banking Grant Knuckey said the 'vast majority' of the bank's home lending was on fixed rates - around 92%. He noted that fixed home loans are influenced more by wholesale rates and expectations of where the OCR is heading next.