The country’s largest bank has cut home loan rates ahead of the Reserve Bank’s decision on the official cash rate.
The ANZ changes would be effective from tomorrow.
The standard rate for a six-month fixed-term home loan at the bank would be reduced by 26 basis points to 6.84% per annum. The special rate would be 6.24%.
The standard rate for a one-year fixed-term home loan would be reduced by 20 basis points to 6.39% per annum. The special rate would be 5.79%.
Other fixed-term rates on offer were reduced by 10 basis points.
There were no changes to fixed-term rates for four or five-year terms.
Meanwhile, term deposit rates for periods longer than 90 days would be cut between five and 25 basis points. There was a minimum investment of $10,000.
Special rates were available to customers with a minimum of 20% equity and an ANZ transaction account with salary direct credited.
The bank’s move was ahead of tomorrow’s official cash rate (OCR) decision — which economists and financial markets have tipped would bring a 50 basis point cut.
‘Path of least regret’
Last week, ASB economists said they were expecting the Reserve Bank (RBNZ) to set the OCR back to 4.25%, “as the path of least regret”.
“With inflation back around the target mid-point and spare capacity starting to build up, the amount of monetary restraint needs to be quickly pared back,” they wrote.
“A 50 basis point cut would achieve that.
“A 75 basis point cut would likely overdo it given most of the recent developments have been in line with the Reserve Bank’s August economic outlook.
“The inflation outlook remains inherently uncertain, with some upside external inflation risks potentially surfacing in 2025.
“We are sure the Reserve Bank is also mindful that it is about to go on a three-month policy holiday until the February Monetary Policy Statement, which leaves less flexibility for the RBNZ to respond.
“And, at 4.25%, the RBNZ can be confident it won’t have overshot even if inflation suddenly looks like it is going back to its old tricks of being sticky.”
