ASB has become the latest major bank to lift its fixed home loan rates, following increased wholesale funding costs driven by new escalations in the Middle East.
The bank joins the country's largest bank, ANZ, along with Westpac and BNZ, in raising home loan and term deposit rates.
Home loan rates increased across most fixed terms, with the biggest rise on the 18-month term, up 26 basis points to 5.35%. One-year rates rose 24 basis points to 4.99%, two-year rates increased 20 basis points to 5.45%, three-year rates climbed 16 basis points to 5.45%, and six-month rates edged up 10 basis points to 4.79%. Four- and five-year rates were unchanged.
Term deposit rates saw more modest increases, with the 24-month rate up 20 basis points to 4.20%, while the nine- and 18-month rates each rose 15 basis points to 3.70% and 4.15% respectively. The six-month rate increased 10 basis points to 3.55%, while all other terms were unchanged.
ASB executive general manager for personal banking Adam Boyd said wholesale interest rates were continually volatile and had climbed in the past month.
"This has a direct bearing on the rates we offer on lending and deposits, in line with what is happening in markets around the world."
Boyd said the changes allowed for stronger term deposit rates, urging homeowners with questions about lending to get in touch.
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