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Westpac and ASB Bank cut fixed home lending rates today after the Reserve Bank signalled an interest rate cut by the end of the year.
Westpac mortgage rate cuts ranged from 0.1 percentage point to 0.4 points, with the two-year fixed rate falling 0.2 points to 9.2 per cent.
Westpac's 12-month deposit rate fell 0.3 points to 8.30 per cent.
"This realignment of rates is in response to the sentiments expressed by the RBNZ in today's OCR (Official Cash Rate) announcement and the resulting drop in wholesale rates," Westpac spokesman Craig Dowling said.
ASB held its six- and 12-month fixed rates steady, but like Westpac cut its two-year rate by 0.2 points to 9.20 per cent, and lowered other rates by 0.05 points to 0.4 points.
Reserve Bank governor Alan Bollard said today that the central bank was likely to be in a position to lower the OCR later this year, sooner than expected, despite inflation forecast to hit 4.7 per cent.
He held the OCR, as expected, at 8.25 per cent.
- NZPA
