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\nWestpac also recently uppped its rates.
\nPhoto: 123RF\n<\/p>\n
Kiwibank is the latest bank to raise home loan interest rates, as concern grows about the future path of inflation.<\/p>\n
It said it was increasing a number of its fixed-term home loans.<\/p>\n
The one-year special lifts from 4.59 percent to 4.65 percent. The two-year special rises from 5.09 percent to 5.29 percent, the three-year from 5.45 percent to 5.55 percent, the four-year from 5.79 percent to 5.89 percent and the five-year from 5.89 percent to 5.99 percent.<\/p>\n
It follows a similar move from Westpac last week. On Friday, Westpac sais it was lifting its one-year home loan rates by 10 basis points and its 18-month rate by 14.<\/p>\n
Infometrics chief forecaster Gareth Kiernna said the one-year rate would still be attractive to borrowers because it was lower, but the three-year rate was offering certainty at a price that was still “pretty close”.<\/p>\n
“If you’re with BNZ and can still access their three-year 5.29 percent rate, I’d be locking it in ASAP.”<\/p>\n
He said wholesale rates had not moved a huge amount over the past couple of weeks, so it was not immediately clear what had sparked the recent bank moves.<\/p>\n
They might have been holding off a bit, he said, hoping wholesale markets would fall again but had to move when they didn’t.<\/p>\n
“It’s probably the overall trend that you’d expect, given inflation and price pressures.”<\/p>\n
He said it seemed likely that other banks would move in a similar way.<\/p>\n
“They do tend to sort of follow each other. So you’re probably going to see the likes of ASB and BNZ following at some stage.”<\/p>\n
He said Tuesday’s inflation update had been worse than expected, which meant the Reserve Bank potentially had less room to move going into the current fuel price crisis.<\/p>\n