ANZ hikes rates ahead of RBNZ decision

The nation's biggest bank has made a series of changes, effective this morning. 

Across its special card, rates rise from 10 to 14 basis points. The bank's one year special jumps to 2.69%, 18 month to 2.89%, two year to 3.05%, and three year to 3.25%.

Its ANZ fixed rate card, for lower deposit borrowers, jumps as much as 30 basis points.

The changes come ahead of the Reserve Bank's widely anticipated rate hike tomorrow.

Economists believe the central bank will raise the official cash rate for the first time since 2014, by 25 basis points, amid strong inflation and demand pressures in the economy. 

Rates have begun to edge up in recent months ahead of the expected hikes, with wholesale markets pencilling in a series of hikes over the next year. 

New Zealand is poised to become one of the first economies in the world to raise interest rates post-Covid, despite the ongoing threat of the Covid-19 Delta variant.

NZ is set to embark on a divergent path from its regional peers.

The Reserve Bank of Australia is not expected to raise rates until 2024 following its Delta outbreak and state-wide lockdowns.