kept the OCR at 2.25%<\/a> on Wednesday but signalled rate rises would come earlier and more quickly than previously expected later in the year.<\/p>\nHalf the monetary policy committee took the view that rates should have risen this week.<\/p>\n
Kiwibank said on Thursday it was increasing its nine-month term deposit rate by 15 basis points to 3.55%, and its one-year rate by five basis points to 3.9%.<\/p>\n
Gareth Kiernan, chief forecaster at Infometrics, said they were small shifts.<\/p>\n
“However, yesterday’s unexpectedly close decision has seen swaps pricing for future meetings lifted by 5-10 basis points, because there’s an implied greater level of certainty, as certain as things might be in what is currently a very uncertain environment, that the bank will lift the OCR consistently through most of the rest of the year.<\/p>\n
“Financial markets had largely expected those rate rises anyway, but a bit of confirmation from the bank and the fact that we were closer than anticipated to a hike yesterday has increased market confidence about the track and therefore got it more fully priced in. <\/p>\n
“Set against yesterday’s movements, swap rates had come down 15-20 basis points over the last fortnight, so there could be a little bit of scope for further wholesale rate rises before banks need to pass those increases on, to either mortgage or term deposit rates.”<\/p>\n
Reserve Bank data showed two-year home loan rates have picked up most significantly from the trough of last year. From a low of 4.5%, they were now hovering around 5.2%.<\/p>\n","protected":false},"excerpt":{"rendered":"Kiwibank has made changes to its term deposit rates \u2013 the first significant move since the official cash…\n","protected":false},"author":2,"featured_media":448667,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[138,219,111,139,69,244],"class_list":["post-448666","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz","tag-personal-finance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/448666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=448666"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/448666\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/448667"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=448666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=448666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=448666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}