A second bank, after the Co-operative Bank, has jumped the gun on the upcoming Reserve Bank (RBNZ) Official Cash Rate (OCR) change, widely anticipated to be a 25 basis points cut tomorrow (Wednesday).
BNZ has announced a similar -25 bps floating rate cut, to 6.44%, effective for existing clients on Wednesday, June 4.
They have also cut their fixed rates. These changes mean the distance between the BNZ variable rate and the key fixed one year rate has shifted from +170 bps to +149 bps.
Banks are expected to be very quick cutting their floating rates as soon as the RBNZ announced its actual decision at 2pm on Wednesday.
The early cutting has been led by the Co-operative Bank who did their -25 bps trimming on May 14, 2025.
We will update this review as each change to floating rates comes through.
| Currently | cut | New | effective* | |
| % | bps | % | ||
| ANZ | 6.69 | |||
| ASB | 6.64 | |||
| BNZ | 6.69 | -25 | 6.44 | 4 June |
| Kiwibank | 6.50 | |||
| Westpac | 6.74 | |||
| Cooperative Bank | 6.20 | -25 | 5.95 | 29 May |
| Heartland Bank | 6.25 | |||
| SBS Bank | 6.74 | |||
| TSB | 6.64 | |||
| * effective for existing borrowers. For new clients, most banks have them effective sooner. |
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If you are an existing customer, you can ask your bank to apply the reduction sooner than their effective date listed above. They should, because the delay is only because banks are under an obligation to give advance notice of a change. But that is only meaningful in the case of a rise. They will give a new client the lower rate immediately.
Serviceability test rates
To be updated when details are ascertained. See our tracking page here.
Along with falling mortgage rates, banks are also cutting savings account rates.
Fixed mortgage rates
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Daily swap rates
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