As the Reserve Bank is likely to strengthen its monetary policy, ANZ and the National Bank have proclaimed a rise in their key interest rates, as well as, the saving account rates by nearly 25 basis points.

BNZ, Kiwibank and Westpac are planning to follow ANZ and National Bank in the move.

ANZ announced that it is going to boost its mortgage rate by 26 basis points, up to 5.95% from Saturday onwards for the new customers, while from July 2 for the already assigned consumers.

The move has come in the wake of the Reserve Bank raising the Official Cash Rate by 25 basis points to 2.75%.

ASB's Head of Products, Catherine McGrath, said, “The market is now entering a new cycle, and we need to ensure our products are priced appropriately”.

However, ANZ has not announced any big change in its Flexiplus mortgage rate, which has been fixed at 5.95%. On the other hand, it has raised the fixed mortgage rate by 10 basis points to 6.10%.

In addition, it elevated its 9 month period deposit rate by 10 basis points to 5.10% and its 1 year period submission rate by 10 basis points to 5.20%.