PSIS has raised its two, three and four-year mortgage rates by between 10 and 20 basis points.
The co-operative raised its two-year rate by 10 basis points to 6.45 per cent, its three-year rate by 10 bps to 6.95 per cent, and its four-year rate by 20 bps to 7.30 per cent. The new rates are effective immediately.
The rises follow jumps in swap rates over the last two weeks as markets brought forward their forecasts for when the Official Cash Rate would increase.
The majority of economists are now saying the Reserve Bank would definately hike the OCR before the year is out, with increasing speculation of a September or October increase.
BNZ head of research Stephen Toplis last week went as far as to say Reserve Bank governor Alan Bollard had all the evidence he needed to hike the OCR this Thursday.
