The Co-operative Bank has trimmed almost all their fixed rates, the latest bank to cut.
Their six month fixed is reduced by -10 bps to 3.69%, a market leading low.
And their four year and five year fixed rates have been reduced by -10 bps as well, also to market-leading low levels of 4.19% and 4.29%.
In addition they have trimmed -10 bps from their one year rate to 3.69%, -4 bps from their eighteen month fixed rate to 3.75% and -9 bps from their two year fixed rate.
They didn't change their 3.99% three year rate.
We are in an in-between period ahead of the Spring real estate season which will kick off in just a few weeks. We are expecting eye-catching rates as banks work hard to win their share of what could be a lower-than-normal sales volume period
The next threshold, given the aggressive flattening of the curve in both the wholesale market and the retail term deposit market, is likely to be sub-4% rates all the way out to a fixed five year term.
At the same time, The Co-operative Bank has cut all its term deposit interest rates with the reductions ranging from -10 bps to -15 bps. For the popular 6 month term the cut is -10 bps, and for one year it is -15 bps.
Here is the full snapshot of the advertised fixed-term rates on offer from the key retail banks.
|Fixed, below 80% LVR||6 mths||1 yr||18 mth||2 yrs||3 yrs||4 yrs||5 yrs|
|as at August 21, 2019||%||%||%||%||%||%||%|
|China Construction Bank||4.70||4.85||3.65||3.90||4.95||4.95|
In addition to the above table, BNZ has a unique fixed seven year rate of 5.70%.