ASB adjusts interest rates

ASB has lifted some of its fixed home loan and term deposit rates and lowered its 6-month home loan rate to a market leading 4.65%, in response to longer term wholesale rate movements.

Fixed mortgage rates are influenced by a variety of different market forces, including customer deposit rates, operating costs, the cost of overseas funding and wholesale interest rates. Unlike variable rates which are connected to the Official Cash Rate (OCR), fixed rates are more influenced by wholesale markets – essentially the price banks pay to buy the money they lend out. Right now, those wholesale costs are higher which flows through to home loan rates on some terms.

"While today's adjustments reflect the reality of higher funding costs, the change in market conditions is good news for some of our savers with term deposit rates increasing by up to 35 basis points," says Adam Boyd, ASB's Executive General Manager Personal Banking.

ASB has practical information for customers on the current interest rate environment available on its website as well as support to help customers take control of their financial wellbeing and achieve their goals at its Financial Wellbeing Hub.