Kiwibank bumps up home loan rates

Economist expects rates to start to fall in mid-2024

Kiwibank bumps up home loan rates

Kiwibank said it is lifting a number of its home loan rates.

The New Zealand-owned bank’s two-year fixed home loan interest rate will rise by 10 basis points from 7.79% to 7.89% for the standard rate, and from 6.79% to 6.89% for those eligible for the special.

Kiwibank’s three-year fixed rate will rise by 20 basis points from 6.49% to 6.69% for special rates and 7.39% to 7.59% on standard rates, Stuff reported.

For the bank’s four- and five-year fixes, there will be an increase of 20 basis points, taking the five-year special rate to 6.49%.

The Reserve Bank has indicated that it will hold the official cash rate steady at 5.5%. Meanwhile, economists were split on whether there should be any more interest rate increases. Any cut was tipped to be still some time away.

Jarrod Kerr, chief economist at Kiwibank, has one of the earliest predictions for when rates will start to decline, forecasting that there could be movement in the middle of 2024.

But offshore influences and global markets were also driving interest rates, prompting a number of banks to make some rate change moves in recent weeks, Stuff reported.

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