Banks pass on cash rate increase

RICHARD MEADOWS
Last updated 12:41 28/07/2014

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The Bank of New Zealand has joined ANZ and ASB in passing on last week's official cash rate increase to mortgage customers.

On Thursday  the Reserve Bank  raised the official cash rate to 3.5 per cent, prompting the usual flurry of price increases from the banks.

ANZ announced higher rates within an hour of the announcement, followed by ASB. BNZ has now followed suit, increasing its standard floating loan rates by the full 25 basis points to 6.74 per cent, the same as ANZ and slightly below ASB's 6.75 per cent.

Westpac has held off on increasing rates for new customers, with its current rate still advertised as 6.24 per cent.

Smaller banks including Kiwibank, Heartland, TSB and The Co-operative Bank are also yet to react to the latest hike, with rates between 6.4 and  6.49 per cent.

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- The Dominion Post

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