BNZ has become the latest bank to put up its home loan rates.
It is increasing its standard one-year rate by 20 basis points to 4.99 percent.
The 18-month rate also increases by the same margin, to 5.29 percent.
Two- and three-year rates will lift by 16 basis points and four-year rates by six, all to 5.45 percent.
Infometrics chief forecaster Gareth Kiernan said financial markets had priced in the official cash rate getting to 3 percent or slightly above by the end of this year and 3.5 percent by the middle of next year.
“That’s in line with our forecast, pretty much all of what I expected is already priced into rates. You might get another 10 basis points, maybe slightly more on the one-year rate before the end of the year but I don’t see a great deal of pressure on the one-year rates past that.
“Even through 2027 as the expected rate increases become reality you might get a bit more but I’m talking about a one-year rate at maybe 5.4 percent and the two-year at 5.7 percent. It’s not huge, assuming the world behaves itself, there’s not massive amounts of lift left.”
He said it was unlikely that home loan rates would get into the 6 percent range again.