Term deposits to rise after funding for lending ends next month

The Reserve Bank could tighten monetary policy by more than 100 basis points in the next two weeks. (Image: Getty)

Wed, 23 Nov 2022

Term deposits and other retail interest rates are expected to increase after December as the Reserve Bank’s funding for lending programme (FLP) ends and banks compete for cash.Interest rates being offered to the NZ public have been increasing as the central bank has aggressively tightened monetary policy since last October.However, the difference between retail and wholesale rates has shrunk as the latter have climbed faster than the former.One-year swap rates have overtaken an equivalent term deposit for the first time in more than a dec...

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