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)

Mon, 24 Jul 2023

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...

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