New Zealand mortgage lender ANZ National has determined the need to raise interest rates again here is too important to pass up. The global credit market turmoil here is what is causing the squeeze says the lender, and "severe" market conditions make the raise essential.
Homeowners here have already felt the pinch in these rising rates and many are beginning to struggle to make payments on them. Fixed mortgage rates rose with the 2 year rate up by 20 basis points, to a high of 9.7%. The three year rate, which is the second most popular option, rose 20 basis points to 25 basis points to 9.55%. ANZ National often sets the trend for other smaller banks within the country.
Another key area where rates will likely rise is on the floating mortgage rates which will increase by 20 basis points which would include a climb to a staggering 10.75%.
New Zealand is struggling with some of the highest interest rates, as the country fights off the rising inflation that continues to cripple the economy. On Tuesday, the dollar here advanced to the highest level that it has been in more than 23 years.
Home building approvals for the country did rise by 3.3% from December. The Reserve Bank of New Zealand has the office lending rate set at 8.25%, which is charged to banks borrowing funds.
