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ASB raises fixed mortgage rates
Friday October 16, 01:09 PM
ASB Bank has raised its fixed mortgage rates today.
The move comes at a time when interest rates in the wholesale money market are rising.
There is speculation that the Reserve Bank of New Zealand will raise its official cash rate sooner than the latter part of 2010 it has been signalling.
Reserve Bank of Australia (RBA) governor Glenn Stevens said this week it would be a mistake to be "too timid" to raise interest rates in response to a brighter economy.
The RBA board took the first step to returning interest rates towards what Mr Stevens described as more normal levels last week, when it lifted the cash rate to 3.25 percent, from 3 percent.
In New Zealand, government-owned Kiwibank announced last week that it was raising many of its fixed mortgage rates.
ASB has hiked its six month mortgage rate by 25 basis points to 5.75 percent. Its new five-year rate is now 8.75 percent.
The one-year rate is 6 percent, the 18 month rate is 6.6 percent and two-year rate is 7.15 percent. The three-year rate is 7.95 percent and the four-year rate is 8.5 percent.
ANZ economists said today that a sell off in New Zealand's interest rate market yesterday on higher than expected consumer price index data continued overnight. The sell-off raised interest rates in the money market across the yield curve.
"Bias is firmly to the pay side," ANZ said.
Source:
- Cavalier Corporation Limited (NZX: CAV.nz)
- Contact Energy Limited (NZX: CEN.nz)
- Fisher & Paykel Appliances Holdings Limited (NZX: FPA.nz)
- Freightways Limited (NZX: FRE.nz)
- Hallenstein Glasson Holdings Limited (NZX: HLG.nz)
- New Zealand Exchange Limited (NZX: NZX.nz)
- Restaurant Brands New Zealand Limited (NZX: RBD.nz)
- Sanford Limited (NZX: SAN.nz)
- Sky City Entertainment Group Limited (NZX: SKC.nz)
- Telecom Corporation of New Zealand Limited (NZX: TEL.nz)
- The Warehouse Group Limited (NZX: WHS.nz)
- Fletcher Building Limited (NZX: FBU.nz)
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