Term deposit rates also increased by between 15 basis points at the shorter end and 30 basis points for five-year terms. Consumer price index data has shown weak results at 5.5%, and thus, official cash rate increases were less likely. Some analysts are expecting this rate to persist through 2025. Gareth Kiernan, chief forecaster at Infometrics, said there are some factors that influenced these movements, including the cost of funding on international markets. “At the shorter end, Kiwibank looks like it’s moving its mortgages to be more in line with the other banks – previously they’ve been a little bit lower,” said Kiernan.
