Mortgage Rate Increases and Banks’ Role in NZ’s Economic Recovery

The head of New Zealand Financial Services Group, Bruce Patten, criticizes banks for increasing mortgage rates prematurely, amidst an economy still in recovery. He argues that banks are capable of managing recent financial pressures but will likely pass costs onto customers soon. Westpac recently raised its mortgage rates by 30 basis points, a move followed by the Co-operative Bank, which also increased longer-term deposit rates. Additionally, ASB has halted discounts on most mortgage rates, effectively raising interest rates.

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