13 Jun 2012

BNZ revises mortgage rate cut

3:08 pm on 13 June 2012

A major bank has partially reversed a mortgage rate cut made less than a month ago.

The BNZ has raised its 18-month fixed rate by 45 basis points to 5.55%.

The rate was cut by 79 basis points on 14 May, amid cuts to fixed mortgage rates by all of the major banks.

Those cuts came as borrowing costs for banks on local money markets fell to record lows, as speculation rose that the Official Cash Rate would be cut by the Reserve Bank.

Borrowing costs on the local market have risen again in the past week as the odds of a cut in the cash rate have fallen.