BNZ has increased some of its home loan rates for the second time in a week.
The increases come as most major banks raise their rates, with wholesale interest rates trending higher, driving up what it costs them to borrow the money they lend.
Effective from today, BNZ increased its standard one-year and 18-month rates by 10 basis points to 4.59% and 4.79%, respectively.
Its standard four-year and five-year rates were also increased by 10 basis points to 5.59% and 5.79%, respectively.
Those with less than 20% equity in their property will pay a low equity interest rate premium.
BNZ also increased rates for its one-year, 18-month, three-year, four-year, and five-year term deposits – with new rates ranging from 3.70% to 4.70%.
On Wednesday last week, the bank increased several of its loans, with some receiving further hikes today.
Both ASB and Kiwibank also increased rates yesterday.
ASB’s executive general manager, personal banking, Adam Boyd, said wholesale interest rates "have remained volatile and continue to trend higher".
"These movements reflect heightened global economic uncertainty and renewed pressures across global markets. For savers, the same environment means stronger returns, and it's worth considering how your money could work harder."
The changes to rates come as Kiwis continue to feel anxiety about the economy, with day-to-day costs like fuel prices impacted by the war in Iran.
Yesterday, Reserve Bank Governor Anna Breman said higher wholesale rates and lower equity prices were "already tightening global financial conditions, meaning higher borrowing and financial costs for some households and firms".
"This could also dampen growth in the near term," she said.
Also yesterday, the Government announced a support package to ease the impact of increasing fuel prices.
From April 7, about 143,000 working families with children will get an extra $50 per week through a boost to the in-work tax credit.
A further 14,000 families will become newly eligible but will receive less than $50 per week due to payments abating with income.
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