On the eve of the next RBNZ Monetary Policy Statement, MP's have come out blasting the banks for not passing on the latest OCR cuts fully to their floating and short term rates. In saying this we have reported in the past few weeks of the many increases made to long term fixed rates made by all our major banks. Many non-bank lenders are now following the trend of the banks and increasing their longer term fixed rates with General Finance, Cairns Lockie, HBS, PSIS and Wairarapa Building Society being the latest to make similar increases.
HBS has made the larger increases of 20, 40 and 60 basis points to its three, four and five-year rates respectively, although it has also dramatically dropped its six-month rate by 39 basis points to 5.60%. PSIS has increased all its rates except its one-year rate which stays at 5.50%. These latest increases for PSIS included a 20 basis point increase to it floating rate to 5.95% but it is still the lowest in our table.
Westpac has now made increases to some of its rates as the other major banks have lately. Its five-year rate has been increased by 30 basis points to 7.90% and its three-year rate is now 6.95%, up 10 bps.
