New wave of rate hikes starts

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ANZ is the second of the big banks to hike interest rates this week blaming wholesale rates for the changes.

Friday, August 23rd 2013, 9:37AM 1 Comment

It has increased all its medium and long term fixed home loan rates by between 20 and 60 basis points.

The biggest increases are to the four and five year rates which have gone up 60 and 50 points respectively.

The five-year rate is notable as ANZ is the first of the big banks to go above the 7% mark.

BNZ also increased rates this week.

Both banks have rolled out special rates on the 18-month term. BNZ replaced its three year Classic rate with an 18-month on, and ANZ added an 18-month special for loans with more than a 20% deposit.

BNZ’s rate is 5.59% and ANZ’s 5.39%. ANZ’s standard 18-month rate is 5.75%

ANZ has kept its existing 4.95% one-year special fixed rate will remain in place.

It says rates for one to five-year terms are increasing reflecting higher funding costs to the bank.

“Increases to other rates reflect costs to the bank in sourcing wholesale funding which have increased over the last month,” ANZ Managing Director Retail Kerri Thompson said.

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