Interest.co.nz notes that BNZ’s one‑year rate is now matching Kiwibank and sits below Westpac’s recently increased one‑year offer, giving BNZ a competitive edge at that term. Its 18‑month rate also remains “at a very competitive level among the major banks”, while the two‑year rate, although higher, is still around 30 basis points below Westpac’s new two‑year level and in line with ANZ and Kiwibank. Wholesale funding costs drive latest round of risesBNZ did not provide commentary alongside its rate announcement, but the timing closely mirrors Westpac’s explanation that longer‑dated funding has become more expensive. Sarah Hearn, Westpac NZ’s managing director of product, sustainability and marketing, said this week that longer‑term wholesale rates “have increased significantly in recent weeks, driving up funding costs for lenders”. Those shifts come despite the Reserve Bank holding the official cash rate at 2.25% at its February meeting.

Source: Stuff March 18, 2026 13:10 UTC