Are interest rates on the rise?

Effective tomorrow, interest rates on ASB term deposits increase on nine month to 60 month terms. The bank's 60 month deposit jumps by 75 basis points to 1.75%, up from 1%. 

The hikes come buck a downward trend in term deposit saving rates and loan rates, with the official cash rate at 0.25%. 

Wholesale interest rate markets have edged up over the past few months, as economic data indicates a stronger than expected recovery. 

Global bond yields have risen across the world over the past month, and money markets are betting that rates will begin to rise from this point, rather than fall lower, or to negative territory.

Craig Sims, executive general manager of ASB's retail division, said the bank was keen to give savers more options. 

While there’s been much focus on home loan rates, customers with funds to invest are often seeking to balance their portfolios, and term deposits can be an important part of the mix.

“Given the performance of the New Zealand economy through Covid-19 has been stronger than anyone anticipated and our commitment to helping the financial progress of all New Zealanders we’re pleased to be able to support our savers with these market leading term deposit rates.”