Banks are locking in low interest rates through the bond market, which should allow them to offer more attractive home mortgage rates, KPMG said.

KPMG, in its latest Financial Institutions Performance Survey, noted that the Reserve Bank had taken everyone by surprise when it cut its official cash rate (OCR) cut by 50 basis points on August 7.

Market expectations were for a quarter of a point cut.

Investors will need to diversify as low interest rates start to bite
Banks slash home loan rates to new record lows - but not everyone is winning


The central