Economist: Interest rate increases is banks passing on costs to customers

Author
Newstalk ZB,
Publish Date
Tue, 26 Oct 2021, 7:04PM
(Photo / File)
(Photo / File)

Economist: Interest rate increases is banks passing on costs to customers

Author
Newstalk ZB,
Publish Date
Tue, 26 Oct 2021, 7:04PM

Those looking to refix their mortgage might be watching nervously as home loan rates keep going up.  

Kiwibank's chief economist Jarrod Kerr said interest rates have lifted much faster than he expected. 

Infometrics principal economist Brad Olsen told Heather du Plessis-Allan banks are passing costs on to customers. 

“Their own costs, they money they are having to buy to back themselves up is becoming more expensive and they’re saying well, look, we’ve got to pass that on to our customers.” 

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