BNZ has followed ASB's move yesterday by raising its six month term deposit rate to 4.8% for deposits over NZ$10,000. See and compare all deposit rates for terms less than one year here, and terms one year and greater here. BNZ raised its six month deposit rates by around 160 basis points, at the same time cutting its four month rates from 4.6% to 3.4% for the NZ$10,000 tier, 3.45% for the NZ$50,000 tier and 3.5% for the NZ$100,000 tier. Banks have been raising both their term deposit rates and fixed mortgage rates in recent months in anticipation of increases in the Official Cash Rate later this year and as they compete hard for retail deposits. The Reserve Bank's new prudential liquidity guidelines are pushing banks to get their funding from more stable sources, rather than 'hot' short term international money markets. These stable sources include longer term wholesale bond issues and 'retail' deposits from 'Mums and Dads' in New Zealand.
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