KEY POINTS:
Kiwibank has responded to today's cut in the Official Cash Rate by reducing all its home loan rates.
These include 0.50 per cent off its variable rate which moves to 9.7 per cent and 0.36 per cent off its two-year fixed rate, which moves to 8.49 per cent.
"We appear to have passed the peak of very high interest rates and we now have the opportunity to pass on some genuine savings to home owners," Kiwibank chief executive Sam Knowles said.
He said Kiwibank had taken "a very aggressive position" with its 8.49 per cent per annum two-year fixed rate, while it has moved its three-year rate to 8.39 per cent.
Those rates apply for those with 20 per cent or more equity in their property.
Knowles said forecasting rate movements was difficult, but he envisaged Kiwibank being able to at least hold the new rates and to look for further cuts when the opportunity arose.
- NZPA
