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The official cash rate hasn't be hiked since May so why are home loans still rising? Yesterday, ASB raised its one year mortgage rate to 7.45 per cent.
ASB's two-year fixed rate went up to 7.05 percent - the highest in 14 years.
Wholesale interest rates have remained stable since the Official Cash Rate was raised to 5.50% on the 24th of May.
And yet all banks have continued to steadily raise their short term rates.
The Commerce Commission is currently investigating the personal banking sector to assess the level of competition and the quality of services.
David Cunningham, chief executive of mortgage broker Squirrel, and a former banker of 30 years, says it's simple: bank profits are up and consumers are paying the price.
