NZ Banks Pass Through Rate Hike for Mortgages, Not Savings

New Zealand's financial watchdog, the Financial Markets Authority (FMA), has released a report highlighting uneven rate hikes by banks in response to the Reserve Bank of New Zealand's 0.25 percentage point official cash rate (OCR) increase on September 2nd.

All eight major banks reviewed by the FMA passed through the full OCR rise to floating-rate mortgages, affecting about 98% of the country's housing loans, including ANZ and Westpac.

However, savings customers saw a different story: ASB and SBS didn't raise on-call savings rates at all, while ANZ lifted them by just 0.05 percentage points.