Westpac will increase some home loan rates by up to 14 basis points, with the bank also making changes to term deposit rates.
From April 20, the one-year fixed home loan rate will increase by 10 basis points to 5.29%, while the 18-month rate increases by 14 basis points to 5.59%.
The “special” fixed home loan rates (minimum 20% equity, plus salary credit into a Westpac account) for one-year and 18-month terms will also rise by 10 and 14 basis points respectively.
The six-month and two to five-year fixed rates (for both standard and special) remain unchanged.
Meanwhile, Westpac’s 18-month and two-year term deposit rates will increase by 20 and 10 basis points respectively.
It comes as rival bank ANZ also announced increases in fixed home loan rates by up to 20 basis points on Wednesday.
ANZ NZ’s managing director for personal banking, Grant Knuckey, said: “These adjustments across our lending and savings rates reflect recent moves in wholesale interest rates.
“Since the fixed rate changes we made in March, wholesale rates have continued to rise across all terms.
“Lower interest rates have flowed through to customers with around 82% of our home loans on a rate below 5%.”
ANZ said it plans to review interest rates in response to international and local market conditions.
Last week, the Reserve Bank (RBNZ) held the Official Cash Rate (OCR) at 2.25%, but its monetary policy committee warned that “in the near term, inflation is expected to increase and the economic recovery to weaken”.
“The Middle East conflict has disrupted global supply chains, leading to significantly higher prices for oil and refined petroleum products.”
The RBNZ also expected the annual Consumers Price Index inflation to reach a high of 4.2% in the June 2026 quarter. It is already outside the target band at 3.1%.
Earlier this week, ANZ economists said they expect three consecutive OCR hikes – in July, September and October – something rival Kiwibank economists pushed back on as “reckless”.
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