Kiwibank raises interest rates

Kiwibank has raised its home loan and deposit interest rates.

Today's move comes less than a week after the Reserve Bank lifted the official cash rate 25 basis points to 3.25 per cent - the third hike since March.

Kiwibank said its variable and revolving home loan interest rates will increase from 6.15 per cent to 6.40 per cent, effective today for new customers. For existing customers the increase will kick in on July 2.

The bank's Notice Saver and some Term Deposit products will also increase on July 2.

The Reserve Bank signalled in March it may hike the OCR by 200 basis points over two years, and the monetary policy statement released last Thursday did nothing to moderate that view.

Many economists said another increase in the official cash rate on July 24, to 3.5 per cent, was more likely than not.

- By Daniel Lynch of the New Zealand Herald

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