Three banks today announced lower lending rates on some products ahead of next week’s Official Cash Rate (OCR) announcement and after yesterday’s global market rout.
ASB today said it had lowered rates on several of its fixed home lending terms, including a market-leading rate of 6.25% for its two-yearterm.
The bank dropped its 18-month rate by 20 basis points from 6.69% to 6.49% and its two-year rate dropped 24 basis points from 6.49% to 6.25%.
“Longer-term rates are now all below 6%, with the three- and four-year terms dropping 36 and 30 basis points respectively, now at 5.99%,” ASB said.
ASB said it also lowered its term deposits between 9 months and 60 months by up to 30 basis points.
Kiwibank term deposit rate changes ranged from 10 to 20 basis points.
BNZ said it was also updating some of its term deposit rates from 210-239 day terms up to five-year terms.
The two-year swap rate – which influenced interest rates – recently hit a two-year low, according to Kiwibank economists, leading major banks to lower retail rates.
Two large banks today announced changes to home loan fixed rates. Photo / Klanarong Chitmung
The next OCR update is due on August 14.
The financial markets are pointing to a chance of a rate cut next week. But most economists are picking November for the first rate cut. Unemployment data due to be released tomorrow is expected to see a rise.
