Westpac moves to cut mortgage rates after OCR cut

Westpac Bank has moved quickly in response to this mornings cut in the official cash rate (OCR), saying it is cutting its 6 month home loan rates by 0.4 per cent.

This brings its 6 month home loan rate to 5.39 per cent, due to come into effect this Friday.

"An important implication of the OCR announcement is the signal from the Reserve Bank that it intends for interest rates to remain low for an extended period. This will provide considerable cash flow benefit to New Zealand home owners with mortgages," said Westpac general manager of product management, David Cunningham.