More banks pass on OCR increase

BNZ, ASB, and Kiwibank are among the banks that have increased their interest rates in response to the official cash rate hike. Kiwibank raised its variable home loan rate to 6.25 percent, while its revolving loan rate increased to 6.3 percent. The bank also passed on a 15 basis point increase to its 90-day and 32-day notice saver rates.

BNZ and ASB have followed suit, increasing their variable home loan rates by the full 25 basis points and their variable savings product by the same margin. The Reserve Bank criticized banks for not fully passing on the OCR increase to term deposit rates, arguing that a more balanced pass-through would better reflect the desired stance and transmission of monetary policy.

Brief written by urgent.news from RNZ Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.