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Westpac announces second lot of mortgage rate hikes in May ahead of key Reserve Bank decision
BBusiness

Westpac announces second lot of mortgage rate hikes in May ahead of key Reserve Bank decision

  • May 21, 2026

The bank also increased its three-year fixed terms by 6bps to 5.35% (special) and 5.95% (standard).

The Reserve Bank (RBNZ) is due to make its next Official Cash Rate (OCR) decision on Wednesday, May 27.

The OCR currently sits at 2.25%, where it has been since November last year.

Higher-than-expected inflation figures have lifted the odds of the first OCR hike coming in May.

New Zealand’s Consumers Price Index (CPI) increased 3.1% in the 12 months to the March 2026 quarter, according to Stats NZ.

That’s above the RBNZ’s target band of 1-3%.

Market pricing now points to a 40% chance of a 25bps rate hike in May, up from a 20% before the CPI’s release.

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