Kiwibank raises interest rates

Kiwibank has lifted interest rates by 0.25 per cent, following similar rises announced in recent days by most of our other major banks.

The hikes come following the Reserve Bank's increase in the official cash rate by 0.25 per cent earlier this month.

Kiwibank said floating mortgage rates (variable and revolving) will increase by 0.25 per cent to 5.90 per cent from tomorrow for new customers and July 6 for existing customers.

The bank has also increased its six-month fixed rate from 5.99 per cent to 6.10 per cent and the one-year rate from 6.35 per cent to 6.45 per cent effective from tomorrow.

ANZ and National Bank announced increases in their variable mortgage and savings account rates of 25 basis points last Friday.

ASB was the first to break ranks, increasing its floating rate by 25 basis points to six per cent last Thursday.

Meanwhile, Kiwibank has also introduced a new home loan offer that caps the standard floating rate to no more than 6.50 per cent for 12 months.