The Cooperative Bank kicks off the latest round of floating home loan rate reductions with matching cuts to variable rates and savings account rates. ANZ follows with a lesser cut, Westpac too

As widely expected, the Reserve Bank has cut the official cash rate again by another -25 bps to 3.00%.

This is the sixth cut since it peaked at 5.50% in May 2023. The current cutting cycle started in August 2024.

Today's cut comes after the unexpected no-change at the July 9, 2025 review.

So all the banks are primed and the adjustments will come quickly - or so we thought. But there is an eerie pause following the 2pm cut decision.

This time they are led by the Co-operative Bank with the full -25 bps cut taking their rate to 5.70% and a level that will be well below the majors when they announce their reductions.

Their matching cuts on the savings account side range from just -5 bps to the full -25 bps depending on the account.

Update: ANZ is the next to cut, but it is not passing on the full -25 bps of the OCR reduction. They have chosen to reduce their floating rates by only -20 bps. However their Serious Saver rates (their main savings account) will be cut by the full -25 bps, taking its potential rate down to just 2.06%. Other ANZ savings accounts are being trimmed by -10 bps but all of these have rates well below 1%.

The ANZ has said its new lower rate will apply from Tuesday, August 26, 2025 for existing borrowers which is a much faster flow-through than we have seen in previous OCR cut events. For Serious Saver account holders, the effective date is October 1, 2025.

Update: Westpac has followed ANZ with 'only' a -20 bps floating rate cut, and making it effective on August 27. But they have also trimmed their fixed rate by between -4 bps and -30 bps. More soon.

You may recall, but following the May 28 -25 bps OCR rate cut, BNZ was the only major to cut their floating rate by -25 bps. All the others cut less, with Westpac and Kiwibank only cutting -15 bps at that time, the least in this set of majors.

We will update this review as each change to floating rates comes through.

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.