Westpac is hiking most of its special and standard mortgage rates by as 20 basis points.

The bank said its one- and 18-month special fixed-term rates would increase by 10 basis points (bps) to 4.79% and 5.09% respectively from Friday.

Its three-year fixed special rate will jump 14bps to 5.49%.

Its four- and five-year special rates will increase 20bps to 5.59% and 5.79% respectively.

It’s the second rate hike in May by Westpac, which earlier in the month lifted its six-month fixed terms by 20bps to 4.69% (special) and 5.29% (standard).

The bank also increased its three-year fixed terms by 6bps to 5.35% (special) and 5.95% (standard).

The Reserve Bank (RBNZ) is due to make its next Official Cash Rate (OCR) decision on Wednesday, May 27.

The OCR currently sits at 2.25%, where it has been since November last year.

Higher-than-expected inflation figures have lifted the odds of the first OCR hike coming in May.

New Zealand’s Consumers Price Index (CPI) increased 3.1% in the 12 months to the March 2026 quarter, according to Stats NZ.

That’s above the RBNZ’s target band of 1-3%.

Market pricing now points to a 40% chance of a 25bps rate hike in May, up from a 20% before the CPI’s release.