More banks cut mortgage rates

ANZ National Bank and ASB are cutting their floating mortgage rates to 8.7 per cent from 9.45 per cent.

The move comes after Westpac this week announced a cut in its variable rate to 8.7 per cent and Kiwibank went a step further with a cut in its variable home loan rate to 7.95 per cent.

The change at ANZ is effective on Monday for new customers and on December 10 for existing customers.

The National Bank cut is effective for new customers on Monday and for existing customers on December 8.

ASB's cut is effective immediately for new borrowers and from December 8 for existing borrowers.

ASB also announced a range of cuts to its fixed home loan rates. Its two year rate falls to 7.5 per cent from 8.1 per cent, while the one year rate falls to 7.4 per cent from 8.1 per cent. The five year rate falls to 8.25 per cent from 8.75 per cent.

The cuts come ahead of the Reserve Bank's monetary policy statement on December 4. The Reserve Bank cut the Official Cash Rate (OCR) by 100 basis points to 6.5 per cent on October 23.

Economists are forecasting the central bank will cut the OCR by another 50 basis points to 100 basis points on December 4, with some banks putting a 10 to 50 per cent chance of a 150 basis point cut.

Deutsche Bank said today it is formally shifting its view to an expectation that the OCR to be slashed by 150 basis points to 5 per cent on December 4.

- NZPA