OCR peaks forecasts lowered
ASB, Westpac, BNZ, and ANZ expect the OCR to lift by 25 basis points in April and then again in May, lifting interest rates.
When interest rates reach their peak depends on the OCR, inflation and bank funding costs, say the banks.
Most longer-term interest rates are now lower than short-term rates and will have a major bearing on what borrowers will fix at when their mortgages roll off the cheaper to higher interest rates. Until recently most have tended to pick one to two-year rates.
ASB says as households grapple with higher mortgage interest rates as well as the cost of living, it means outgoings in many households will rise by $150 a week.
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