Major bank lifts some interest rates after OCR rise

October 7, 2022
Many economists predict the central bank will hike the rate for an eighth straight time.

ANZ is lifting rates on some lending and savings accounts after this week’s Official Cash Rate rise.

On Wednesday the Reserve Bank announced a 3.5% increase in the OCR, the eighth consecutive time the bank opted for a rates rise.

RBNZ said "it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability and contribute to maximum sustainable employment."

The ANZ Floating home loan interest rate, ANZ Flexible home loan interest rate and Blueprint to build will go up from 0.50% points per annum (pa) to 7.34% pa, 7.45% pa and 4.58% pa.

At the moment, 90% of ANZ home loan balances are on fixed rates. The bank said there is no change to its fixed home loan rates for now.

Business floating and business overdraft base rates are also set to increase 0.50% points pa, ANZ have said.

For Serious Saver, the total interest rate will increase from 0.40% to 2.70% points pa.

ANZ's Ben Kelleher says with local and international inflation rates remaining high, the RBNZ is lifting the OCR in a bid to "cool" the economy.

“With increasing global economic uncertainty and higher inflation, we know people are having to make some tough choices about their spending and they’re feeling understandably nervous,” he said.

“However, we can see from our customer data that many are in good shape to get through this. Where possible, people are choosing to stay on top of their debt and save money where they can.”

Interest rates will be reviewed in line with international and local market conditions.