Both BNZ and Kiwibank have announced their rate cuts, as mortgage interest rates continue their slide in response to falling wholesale money costs. BNZ reduced all their fixed rates, with terms of two to seven years. Their Standard/Fly Buys rates are all now 6.99%, while their GlobalPlus rates are all 7.09% for those terms. Unchanged were their Classic six month rate at 6.49%, their one year rates, and their floating rates. Kiwibank, on the other hand, has reduced its floating rate from 7.45% to 6.99%, the first bank to reduce variable rates in 2009. In addition, they have reduced their two to five year fixed rates all to 7.10%. The influential 90 day bank bill rate was 4.47% today, suggesting the moneymarkets are picking a 75 basis point cut in the OCR on January 29. It has declined quickly over the past two weeks, having fallen 50 bp in that time. However, a number of economists have suggested the cut will be closer to 1.00%. A quick link to the latest mortgage rates, is here >>
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