Daniel Lynch

Digital business journalist for nzherald.co.nz

Kiwibank lifts loan and deposit rates

Kiwibank has raised its variable and revolving home loan interest rates to 6.40 per cent today. Photo / Dean Purcell
Kiwibank has raised its variable and revolving home loan interest rates to 6.40 per cent today. Photo / Dean Purcell

Kiwibank has raised its home loan and deposit interest rates this morning.

The move comes less than a week after the Reserve Bank of New Zealand lifted the official cash rate 25 basis points to 3.25 per cent - the third such hike since March.

Kiwibank said its variable and revolving home loan interest rates will increase from 6.15 per cent to 6.40 per cent, effective today for new customers. For existing customers the increase will kick in on July 2.

The bank's Notice Saver and some Term Deposit products will also increase on July 2.

The Reserve Bank signalled in March it may hike the OCR by 200 basis points over two years and the monetary policy statement released last Thursday did nothing to moderate that view.

Read also:
NZ dollar jumps after Reserve Bank raises rates
OCR hiked to 3.25pc
Brian Fallow: Overvalued dollar sounds alarm bells

Many economists say another increase in the official cash rate on July 24, to 3.5 per cent, is more likely than not.

- NZ Herald

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