ASB lifts some deposit rates as market expects OCR hikes next year

ASB has again moved first to increase its interest rates, although this time it is its deposit rates. ASB announced late on Friday it had raised its 90 day term deposit rate to 4% from 3.75% and had raised its one year rate to 5% from 4.55%. The new rates apply to both ASB and its online unit BankDirect. ASB's rate hikes follow further increases in wholesale interest rates this week in anticipation that the Reserve Bank will begin hiking the Official Cash Rate aggressively from early 2010. ASB increased its fixed mortgage rates last week, sparking a fresh round of rate hikes by others. See here for all interest rate comparisons for up to 1 year and for 1 year and over. See here for an interactive chart of wholesale swap rates.