It's TSB's turn to increase rates. Late yesterday it increased its two, three, four and five year rates. They are up by five, 25, 20 and 30 basis points, respectively.
Also yesterday we had the latest CPI numbers which showed inflation remains subdued, with annual inflation sitting below of the Reserve Bank's target band at 0.7%. However there are concerns that the exchange rate is masking some of the inflation in the economy. HSBC says that recent falls in the NZD coupled with a build-up in capacity pressures should see inflation begin to lift from here.
"As a result, the RBNZ may need to contemplate lifting policy rates from current stimulatory levels, a move which could occur as early as the end of this year."
