\u201cThe impacts from the conflict in the Middle East are still uncertain and we could still see some pressure on inflation on that score. The New Zealand dollar is also weaker than expected, raising import costs,\u201d Knuckey said.<\/p>\n
He said a higher proportion of customers are choosing certainty, opting to fix their loans at the moment.<\/p>\n
It comes after Westpac announced it was lifting variable rates for all home and business loans, as well as its variable savings product Bonus Saver, by 25 basis points (bps) from next week \u2013 mirroring yesterday\u2019s Official Cash Rate (OCR) increase. <\/p>\n
The changes came into effect today for new customers and Thursday for existing customers.<\/p>\n
The bank hasn\u2019t shifted its fixed rates.<\/p>\n
Westpac\u2019s variable home loan rates will now start at 6.14% for its floating and offset products, and 6.24% for its everyday product.<\/p>\n
The variable deposit rates for Westpac\u2019s Bonus Saver will increase to 1.5%, while its Simple Saver product increases by 15bps to 0.2%. Westpac\u2019s Notice Saver remains unchanged.<\/p>\n
\u201cWe\u2019ll continue working hard to support both borrowers and savers through an interest rate tightening cycle,\u201d Westpac New Zealand managing director of product, sustainability and marketing Sarah Hearn said.<\/p>\n
\u201cThe large majority of our home lending is on fixed terms, and there are no changes to any of our fixed rates today.\u201d<\/p>\n
Hearn said \u201ca rising OCR will likely mean good news for savers\u201d.<\/p>\n
\u201cWe supported them through the last year by holding our Notice Saver unchanged even as the OCR fell. This proved highly popular with savers, and we think our 3% pa rate continues to offer great value.<\/p>\n
\u201cOverall, we\u2019ve seen our customers cope well with the economic uncertainty of the past few months. However, we encourage anyone who\u2019s concerned about their finances to come and talk to us, and so we can make a plan to support them.\u201d<\/p>\n
Meanwhile, ASB announced last week it has increased its variable home loan rates by 25bps, while savings on call and savings-plus products are going up by 15 and 20bps.<\/p>\n
ASB\u2019s executive general manager of personal banking Adam Boyd acknowledged interest rate rises can be difficult for households.<\/p>\n
\u201cWe have also recently reduced some of our long-term fixed home loan terms by up to 30 basis points,\u201d Boyd said. <\/p>\n
\u201cWe encourage any customers feeling any pressure with their mortgages to get in touch with us early to work through options.<\/p>\n
\u201cWe also know many customers will be working hard to build their savings, and these increases will help them with their goals.\u201d<\/p>\n