Mortgage rates look set to continue creeping higher. 

The cost of two-year wholesale borrowing for banks has jumped from 3.35% to around 3.70% in just four weeks.  

The increase reflects markets pricing in higher inflation, rising global borrowing costs, and expectations the OCR could stay higher for longer. 

Independent Property Commentator Tony Alexander told Mike Hosking it’s primarily a result of domestic factors – with the extra pressure from rates moving up in Australia and the United States. 

He says New Zealand is currently in a mild recovery mode and inflation is unusually high for this point in the cycle, so our monetary policy will be tightened further.  

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