Big banks' fixed home loan rates rise

BNZ and National Bank have hiked their two-year fixed rates to 7.6 per cent. ASB Bank's rate for the same period is now 7.7 per cent.

The big banks had previously offered two-year fixed rates at about 7 per cent, with some as low as 6.95 per cent.

The move towards higher rates apparently brings to an end the two-month battle for market share in the fiercely competitive home loan market.

Market watchers said the banks' interest rate war was also an attempt to rejuvenate the slowing housing market, which has pushed the domestic economy along at a break-neck speed over the past two years.

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