BNZ will increase some fixed terms by between 19 and 30 basis points, while ASB is increasing some fixed rates by between 20 to 30 basis points. Photo: RNZ
ASB and BNZ have joined the Westpac and ANZ in pushing some of their fixed home loan interest rates higher.
BNZ said it would increase its fixed terms by between 19 basis points, for an 18-month fix, and 30 for a three-, four- and five-year fix.
It will slightly reduce its six-month rate.
That takes its two-year rate to 4.69 percent.
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ASB was increasing the same rates, by between 20 basis points and 30 basis points.
Its two-year rate has lifted to 4.75 percent.
Banks have blamed higher funding costs for the increase.
Markets had priced in another OCR cut before the latest monetary policy statement. But when the Reserve Bank indicated that was less likely, they adjusted.
The two-year swap rate lifted from 2.54 percent in October to 3.09 percent on 15 December, although it has softened slightly since then.
Neither bank has changed its one-year rate. The one-year swap rate also lifted but has since fallen more meaningfully.
"While today's adjustments reflect the reality of higher funding costs, the change in market conditions is good news for some of our savers with term deposit rates increasing by up to 35 basis points" said Adam Boyd, ASB's executive general manager personal banking.
ANZ, the country's biggest bank, said it had seen more customers wanting to switch from a floating rate to a fixed one in recent days.
Some economists have said it could prove that the swap rate reaction was too extreme, and rates could fall a little again.
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