State-owned bank raises floating rates out-of-cycle, upping them to match its main rivals. Also raises overdraft base rate to 9.90%

Kiwibank’s has today (Monday) updated its website to increase its floating interest rates.

It’s floating mortgage rate is up +10 bps to 5.80%.

Its revolving credit rate is also up +10 bps to 5.85%.

And its overdraft base rate is also up +10 bps to 9.90%. (Margins apply above that.)

For perspective, here is the recent change history for Kiwibank’s floating rate product:

Kiwibank last raised its floating rate in mid-May 2017. It has raised its floating rate by +55 bps in 2017, as follows:

 change history Change Floating
  % %
Start of 2016   5.65
March 10, 2016 (the -25 bps OCR reduction) 0.00 5.65
March 11, 2016 -0.20 5.45
August 12, 2016 -0.20 5.25
August 16, 2016 (the -25 bps OCR reduction) 0.00 5.25
November 22, 2016 (the -25 bps OCR reduction) 0.00 5.25
January 10, 2017 +0.15 5.40
February 9, 2017 (the no-change OCR decision) 0.00 5.40
March 10, 2017 +0.15 5.55
March 23, 2017 (the no-change OCR decision) 0.00 5.55
May 11, 2017  (the no-change OCR decision) +0.15 5.70
June 22, 2017  (the no-change OCR decision) 0.00 5.70
July 31, 2017 +0.10 5.80

The last bank to raise their floating rate was Westpac, which hiked it +11 bps on June 15, 2017.

Here is a snapshot of the current floating rates offered by key retail banks and their recent change history:

below 80% LVR as at
Dec 31, 16
as at
Jan 31, 17
as at
Mar 31, 17
as at
Jun 30, 17
as at
Jul 31, 17
      %    
5.59 5.69 5.79 5.79 5.79
ASB 5.65 5.80 5.80 5.80 5.80
5.64 5.79 5.90 5.90 5.90
Kiwibank 5.25 5.40 5.55 5.70 5.80
Westpac 5.65 5.65 5.75 5.84 5.95
           
5.55 5.55 5.65 5.75 5.75
HSBC 5.59 5.59 5.59 5.79 5.79
HSBC 5.59 5.54 5.79 5.79 5.79
5.54 5.54 5.65 5.80 5.80

We are not aware of any compensating term deposit rate changes from Kiwibank.

All current mortgage rates are here.

All current term deposit rates are here and here.