ANZ announced a special 3 month fixed mortgage rate at 5.65% today following the 50 basis point cut in the Official Cash Rate to 3% by the Reserve Bank. Along with the new rate, both ANZ and National Bank cut their variable rates by the full 50 basis points to 6.45%.

Business overdraft rates for both banks were cut 50 bps, and the variable lending rate for rural customers will also be reduced by the full 0.50%, ANZ National said.

"The conditions in the wholesale money markets remain challenging resulting in significantly increased funding costs for banks and we are no different," ANZ National CEO Graham Hodges said. "However we also appreciate that New Zealand households, farmers and business owners are facing similar challenges as a result of the current market downturn," he said.

"As well as reducing lending rates we're commited to keeping capital flowing through the business and rural sector," he said.

In February, ANZ National said it had committed over NZ$4 billion in new lending to farms and businesses over 2009.

To see the new mortgage rates, and a list of others offered in New Zealand, click here.