Cash rate at ceiling, why are mortgage rates still headed up?

Cash rate at ceiling, why are mortgage rates still headed up?
The Cooperative Bank is the latest to ratchet mortgage rates up. (Image: Coop bank)
Brent Melville
The Reserve Bank of New Zealand this month held the official cash rate at 5.5%, calling time after almost two years of turning the screws with their main inflation-fighting lever.Yet, the nation’s banks have continued to push up their housing loan rates. ASB kicked off the widespread rate hike in early July ahead of the latest Reserve Bank of NZ (RBNZ) decision to hold rates when it kicked up its short-term fixed rates, with its one-year rate moving by 20 basis points (bps) to 7.25%.Kiwibank followed suit last Monday, hiking its spec...

More Finance

BNZ preserves margins on flat half-year
Finance

BNZ preserves margins on flat half-year

BNZ outranks its Australian cousins for customer preference.

Pattrick Smellie 07 May 2025
Westpac's NZ net interest margin expands again
Finance

Westpac's NZ net interest margin expands again

Net interest margins rose in NZ, but shrank for the group as a whole.

Pattrick Smellie 05 May 2025
NZSA weighs in on FNZ shareholder issue
Finance

NZSA weighs in on FNZ shareholder issue

Shareholder class action is imminent.

Victoria Young 05 May 2025
Rob Everett to replace Joy Marslin as Simplicity chair
Finance

Rob Everett to replace Joy Marslin as Simplicity chair

The former chief executive of FMA and NZGCP starts on the board in May.

Staff reporters 01 May 2025