ANZ raises key mortgage rates

The big four lender's 18 month special rate is now 3.49%, up from 3.39%, while its two year rate moves from 3.55% to 3.65%. The cuts are effective this morning. 

The two year rate puts ANZ behind its main competitors on price. The other three major banks, plus Kiwibank, SBS, Sovereign and TSB, all offer cheaper two year terms.

Despite the cuts, ANZ's one year rate falls by 10 basis points to 3.45% today. The cheapest one year rates in the market include ICBC at 3.18%, China Construction Bank at 3.19%, and ASB, SBS, Sovereign, TSB and Westpac, all at 3.39%. 

The rate hikes come despite wholesale rates trending down over the past few weeks. Financial markets are still pricing in a "small chance" that the official cash rate could be cut further this year, according to ANZ economists.