Raboplus has cut almost all of its term deposit rates by between 5 and 85 basis points in a move that contrasts with the New Zealand bank trend of rising deposit rates due to increased competition for local funds. Rabobank tends to move its deposit rates in lock-step with wholesale market rates. Meanwhile, BNZ raised its four month deposit rate by 20 bps to 4.8% and cut its 18 month rate by 15 bps to 5.15%. Raboplus cut all of its three month to five year deposit rates, with its six month rate, cut from 4% to 3.15%. The only rate it didn't cut was its one month rate of 3%. See and compare all deposit rates for terms less than one year here and terms one year and greater here. Deposit rates in New Zealand have been on a rising trend in recent months as competition heats up for them to secure more local funding. The rate hikes follow revised prudential liquidity guidelines from the Reserve Bank at the end of June that require banks to raise more funds from New Zealand depositors and for longer terms. The Reserve Bank introduced the new guidelines to try and wean the banks off their dependability on short term 'hot' money from global wholesale money markets, which can dry up during a credit crunch, as seen following the Lehman Brothers failure at the end of 2008.
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