Westpac lifts floating mortgage rates after central bank hikes benchmark
Westpac has raised its floating mortgage rates after New Zealand's central bank lifted its official cash rate from 2.25 percent to 2.5 percent. The move was not a surprise to markets, which had largely priced in the hike.
Westpac, one of New Zealand's major banks, announced it was raising floating mortgage rates after the Reserve Bank of New Zealand (RBNZ) lifted its official cash rate from 2.25 percent to 2.5 percent. The move was widely expected by markets.
The RBNZ's rate hike came as part of efforts to keep inflation in check, with central bank officials recently pointing to the impact of Middle East tensions on global energy prices. Banks passing on rate decisions quickly directly affects the monthly payments of mortgage holders.
While retailers have expressed concern that the rate rise could dent consumer confidence, some economists expect the effect on the broader market to be limited. Mortgage holders are expected to face higher rates as they come up for renewal.
Read next
RBNZ governor says Middle East flare-up reinforces inflation concerns
Reserve Bank of New Zealand Governor Anna Breman said developments in the Middle East over the past 24 hours have reinforced the central bank's concerns about inflation. The remarks come as the US-Iran conflict continues to unsettle global energy markets.
New Zealand Banks Raise Rates After RBNZ Lifts OCR to 2.5%
ECB's Lagarde: Digital Euro Will Not Replace Cash, Despite Fears
Colombia's Inflation Hits 6.14% Just Days After Central Bank Rate Hike to 12%
