Reserve holds fast but banks cut rates

Two banks cut lending rates yesterday despite Reserve Bank Governor Alan Bollard saying there was no scope for easing rates.

Kiwibank cut its two-year lending rate from 7.5 per cent to 7.35 per cent and National Bank dropped its two-year rate from 7.8 per cent to 7.65 per cent.

The cuts came after Dr Bollard said the official cash rate would stay at 6.75 per cent.