Lender hikes interest rates ahead of OCR review
PSIS raises rates; others expected to follow.
PSIS has raised its mortgage rates, the first lender to do so ahead of this week's official cash rate (OCR) announcement.
The co-operative has raised its two, three and four-year mortgage rates by between 10 and 20 basis points,.
It raised its two-year rate by 10 bps to 6.45%, its three-year rate by 10 bps to 6.95%, and its four-year rate by 20 bps to 7.30%.
Economists are divided as to whether Reserve Bank governor Alan Bollard should reverse the emergency 50 basis point cut he made in March after the Christchurch earthquake in February.
The OCR is sitting at 2.5% but there is speculation it could be raised within the next couple of months.
NBR staff
Mon, 25 Jul 2011
Mon, 25 Jul 2011
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Lender hikes interest rates ahead of OCR review
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