AMP alters interest rates

AMP has this morning cut its variable mortgage rate, but raised all of its fixed rates, barring the six month rate.

AMP cut its standard floating mortgage rate by 16 basis points (bps) to 6.29 per cent. It raised all its one-five year rates, by between 25 and 44 bps.

AMP left its six month rate at 5.5 per cent.

The move follows hikes on Friday by ASB and Westpac in the latest round of fixed mortgage rate hikes. ASB and Westpac both raised their six-month rates.

Fixed mortgage rates are rising again as markets predict the Reserve Bank of New Zealand (RBNZ) may have to raise the Official Cash Rate earlier than it has previously indicated.

The RBNZ said it expected to keep the OCR at or below its current record low level of 2.5 per cent until the latter part of 2010.

However, markets are picking a rate hike as early as January.

- INTEREST.CO.NZ