National Bank cuts interest rates

National Bank has cut its 6 month mortgage rate by 34 basis points (bps) to 5.45 per cent today, and its one-year rate by 29 bps to 5.50 per cent.

This follows the 50 bps cut in the Official Cash Rate to 2.50 per cent by the Reserve Bank on Thursday last week and is the first sign of a crumbling of the resolve of banks not to pass on the OCR cut to short term fixed mortgage rates.

National Bank is the first bank to cut its one year mortgage rate following the OCR cut. Last week Westpac cut its 6 month rate to 5.39 per cent. None of the banks have yet moved on their variable mortgage rates, although building society CBS Canterbury and PSIS have.

- INTEREST.CO.NZ