National Bank and ANZ have increased their fixed mortgage rates by 10 to 30 basis late on Thursday after Reserve Bank Governor Alan Bollard signaled imminent hikes in the Official Cash Rate and surprisingly strong employment figures prompted economists to forecast a rate hike on June 10. (Updated to include hikes by stable-mate ANZ) Wholesale interest rates rose late on Thursday, pushing up bank funding costs. National Bank is the first major bank to put up its mortgage rates after the moves on wholesale markets. National said it had increased its 6 month mortgage rate to 6.0% from 5.7%, taking it above Kiwibank, Westpac and BNZ on 5.75%, but bringing it into line with ASB on 6%. ANZ increased its 3 month rate to 5.6% from 5.5% and its 18 month rate to 6.85% from 6.69%. It also increased its 2 year rate to 7.35% from 7.25%. National increased its 1 year mortgage rate to 6.45% from 6.15%, taking it above ASB on 6.25%, and Westpac and Kiwibank on 6.15%. National raised its 18 month rate to 6.89% from 6.60% and raised its 2 year rate to 7.30% from 7.2%. See all mortgage rates compared here.
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