WELLINGTON, July 14 (Reuters) – New Zealand lender ASB said Wednesday it will increase rates on fixed mortgages and deposits as the country’s economic outlook improves.
“New Zealand’s economy is showing resilience and the economic outlook has improved. While interest rates are now rising, they remain at historically low levels, ”said Craig Sims, executive general manager of ASB retail banking.
The annual fixed rate on mortgages was increased from 2.19% to 2.55%, i.e. by 0.36%. Other rates between periods ranging from six months to five years have also been increased.
The move comes ahead of the Reserve Bank of New Zealand’s policy meeting later Wednesday to decide on the cash rate. (Reporting by Pravin Menon; editing by Sandra Mahler)