ASB has increased some mortgage rates following the Reserve Bank's decision to raise the official cash rate (OCR) by 0.25 basis points.
It means the bank’s housing variable rate will shift upwards from 8.39% to 8.64%, and its ORBIT rate will rise from 8.49% to 8.74%.
Alongside the mortgage rates increase, ASB is lifting rates on some savings accounts.
The maximum interest rate on savings plus (full bonus) and head start will increase from 4.65% to 5.00% (0.35%).
ASB’s on-call account will see an increase of 0.25% - from 2.65% to 2.90%.
Today’s OCR rise is the 12th straight increase by New Zealand's central bank.
The latest OCR rise likely means more bad news for people looking to re-fix mortgages and those on floating rates.
The Reserve Bank this afternoon said the OCR will "need to remain at a restrictive level for the foreseeable future to ensure that consumer price inflation returns to the 1% to 3% annual target range while supporting maximum sustainable employment".
It comes as the latest figures released at the end of April have New Zealand's inflation rate at 6.7%, slightly down from 7.2%.
"In New Zealand, inflation is expected to continue to decline from its peak and with it measures of inflation expectations. However, core inflation pressures will remain until capacity constraints ease further,” the RBNZ said.
“While employment is above its maximum sustainable level, there are now signs of labour shortages easing and vacancies declining."
SHARE ME