BNZ, Rabo boost long-term deposit rates
Bank of New Zealand and Rabo upped their long-term deposit rates in a mid-week flurry of movement in the ongoing competition for domestic retail funds.
Wednesday, December 16th 2009, 11:47PM
Rabo undid its reductions from last week, boosting its two-, three-, four- and five-year terms 30, 20, 15 and 10 basis points respectively. The bank also lifted its six-month deposit rate by 5 points and its 12-month offer by 25 points.
BNZ cut 5 points from its 12-month offer on deposits of $50,000 or more, 10 points from deposits of $10,000. On the smaller funding bracket, it bolstered its offer 15 points for 18-month terms, 25 points for two-year through four-year terms and sliced 10 points from its five-year offering. Its bonds mirrored this movement in the 18-month through five-year space, though it added 10 points on the 12-month terms.
Westpac raised its 12-month rate by 70 points and ASB increased its nine-month offer by 10 points while slashing 20 points from its six-month term, 15 points from its 12-month term, 10 points from its two and four-year offers and 25 points from its five-year deposits.
In the Reserve Bank's monetary policy statement last week, Governor Alan Bollard acknowledged the deposit rate war was inflating deposit rates, with many offers between 100 and 150 basis points over wholesale rates.
"Deposit funding costs have risen by a greater extent than wholesale funding costs have eased, causing the estimated overall marginal cost of funding to remain elevated compared to pre-crisis levels," the MPS said.
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