Rates Round Up

BNZ boosts 18-month deposit rates, cuts one-year terms
Bank of New Zealand has jumped ahead in the 18-month term deposit space, boosting rates to 4.7% for any value, just 5 basis points behind TSB, and 20 points more than closest rival Westpac in that space.

It traded off the increased return by cutting 12-month rates to 4%, 4.05% and 4.1% for $10,000, $50,000 and $100,000 amounts respectively.

New Zealand Finance bolstered its longer term rates, lifting two-, three-, four- and five-year deposit rates by 60 basis points, while CBS Canterbury, which expects profits to start normalising next financial year, boosted its short-term rates, with five-, six, and nine-month terms increasing 50 basis points.

Fonterra slashes perpetual bond returns in response to record low OCR
Fonterra has slashed 391 basis points from the coupon on its perpetual capital notes to 4.83% after it reset the interest rate payable on July 10.