Kiwibank has joined ANZ this week in cutting its interest rates ahead of quarterly inflation statistics being released on Thursday.
The change — due in effect tomorrow — comes after the Reserve Bank reduced the Official Cash Rate by 25 basis points last week.
Kiwibank’s standard six-month fixed rate would drop 16 basis points to 6.39%. Its special six-month fixed rate would also drop by 16 basis points to 5.49%.
The bank’s one-year standard fixed rate would go down 20 basis points to 5.89%. The special one-year fixed rate would also drop 20 basis points to 4.99%.
The rest of Kiwibank’s fixed home loan rates would be unchanged. Special rates at Kiwibank required a minimum of 20% equity.
Term deposits were also adjusted across the board.
The 90-day and 100-day term deposits would both be lowered by 25 basis points to 3.50%.
The 120-day deposit would be 3.70%, the 150-day at 3.95%, and the nine-month and one-year rate would be 4%. They were each lowered by 20 basis points.
The six-month and 200-day term deposit would both be 4.10%, both lowered by 20 basis points. The two-year and three-year rates would be 4%, lowered by 10 basis points.
Meanwhile, the four-year and five-year term deposit rates would also be lowered by 10 basis points to 4.20%.
Last Wednesday, the Reserve Bank reduced the Official Cash Rate to 3.5%.
Banks were quick to react, with Kiwibank among several banks to reduce its variable and offset variable rates soon after.
