The banks’ interest rate increases come into effect on 15 July.
It also announced it would increase the bonus interest rate on some of its savings accounts by 0.5 per cent.
Further rate rises expected
“But things will get better. It’s the expectation of the Reserve Bank … that inflation will moderate next year. It will come back down to more normal levels, that will obviously be a big release to people.”
“They’ve got higher inflation, and they’ve got a central bank that’s going to have to do a lot of work to try and rein that inflation in,” Mr Chalmers said.