Banks reviewing rates

Mortgage rates are in a holding patterning following yesterday's OCR announcement, with none of the big banks committing to a move in rates today.

The Reserve Bank lifted the Official Cash Rate for the first time in almost three years, by 25 basis points to 2.75 per cent, a move which was widely tipped to trigger a rates rise within 24 hours.

All of the major banks spoken to by nzherald.co.nz said they were reviewing their rates, but none would be drawn on when or if they might lift rates.

The average floating rate for the major banks was 5.87 per cent, while the two-year fixed rate was 7.3 per cent this afternoon.

The banks' stance, described by one commentator as a "Mexican stand-off" has surprised some market watchers who tipped a rates rise before now.

"I think most people would say banks are quick to put their rates up and slow to put them down," UBS New Zealand economist Robin Clements said.

"I don't think anyone would have been surprised if they had moved by 25 basis points by now," he said.

Clements said it would be "competitive gamble" as to who would move first.