Expect 150bps 'average' rate rise next year, says Westpac

Expect 150bps 'average' rate rise next year, says Westpac
New Zealanders now saving close to 1% of their disposable incomes, half that of a year ago. (Image: Depositphotos)
Staff reporters
Westpac says the true impact of interest rate hikes is still to be felt, with the average New Zealand household having absorbed an average rise of 120 basis points to date, compared to the 525bps rise to the official cash rate (OCR) since late 2021.That's because about 90% of NZ mortgages are fixed for a period, making the pass-through rate of rate hikes gradual. But in its economic bulletin on Monday, the Australian-owned bank says that with about half of all mortgages due to come up for repricing over the coming year, the average rat...

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