Westpac also lowered its six-month and one-year special fixed home loan rates by 30bps to 5.59% and 4.99% respectively.
Its 18-month rate was cut 20bps to 4.99%.
Yesterday, Kiwibank and ANZ also dropped their home loan and term-deposit rates.
Kiwibank announced its six-month fixed special rate home loan rate will drop 16bps from 5.65% to 5.49%. Its standard rate will fall by the same margin to 6.39%.
The biggest cuts were for its one-year fixed rates which dropped 20bps to 4.99% (special) and 5.89% (standard), with a minimum of 20% equity.
Kiwibank has also cut all of its term-deposit interest rates by 10bps to 25bps depending on the term.
The headline figure is 4.10% per annum for a six-month investment term, with a minimum investment of $1000.
ANZ cuts
ANZ has also made changes - its six-month fixed home loan special rate dropped from 5.89% to 5.49%, with its standard six-month term also falling by 40bps to 6.09%.
Its one-year fixed home loan special rate dropped by 30bps from 5.29% to 4.99%, with its standard one-year term falling from 5.89% to 5.59%.
Its 18-month fixed special rate fell by 20bps from 5.19% to 4.99%, with its standard 18-month term falling to 5.59%.
“When reviewing interest rates we consider a range of factors, including the impact on customers, the underlying cost of funds (including wholesale rate movements) and competitor activity,” an ANZ spokesperson said.
It also cut term-deposit rates by 10bps to 30bps depending on the term.
ANZ now has a 4.05% per annum rate of return for a six-month investment term, with a minimum investment of $10,000.
Last week the Reserve Bank cut the Official Cash Rate by 25 basis points to 3.5% in its Monetary Policy Review.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
