Mortgage rates continue to fall in the wake of the Reserve Bank’s cut to the official cash rate, with the BNZ the third bank to move this week.
BNZ said this morning it was lowering many of its fixed term mortgage rates, effective today.
Its six-month rate has been cut by 10 basis points to 5.79%, its one-year rate is down 26 basis points to 5.29% and its 18-month term is down 20 basis points to 5.19%.
The bank also lowered its two and three-year terms by 30 basis points. The two-year rate is now 4.99% and three-year rate 5.29%.
The two-year rate cut to 4.99% brings BNZ into line with ASB, Westpac and ANZ
ASB and Westpac announced a range of changes yesterday.
Rates for savers also continue to fall, with BNZ announcing a host of changes to term deposit rate changes yesterday separately to today’s update. ASB and Westpac also cut rates for savers yesterday.
Reserve Bank moves
Last week the Reserve Bank cut the OCR by 50 basis points to 3.75%, with many predicting further cuts during 2025.
The central bank said annual consumer price inflation remains near the midpoint of the Monetary Policy Committee’s 1% to 3% target band.
“The economic outlook remains consistent with inflation remaining in the band over the medium term, giving the Committee confidence to continue lowering the OCR,” it said.
There was also a flurry of cuts in the wake of Wednesday’s announcement.
