ANZ moves first after the 50 basis points OCR cut, passing on 40 bps to floating rate borrowers, Westpac only passes on 30 bps, ASB goes 30 bps too

As not really expected by analysts or financial markets, the Reserve Bank has cut the Official Cash Rate, this time by another -50 basis points to 2.50%.

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

After an eerie pause, ANZ has been the first to cut its floating rates.

But they have passed on just -40 bps to their clients.

They cut their business base rates by -40 bps too. Our rate tables have all the details for all their product options.

They also cut their Serious Saver rates by -40 bps. That makes the maximum potential rate now 1.65%. Other savings rates have been cut too, but most by only -10 bps because the levels were already very low, under 1%. Most new levels are now an 0.50% interest rate.

Update: Westpac only passed on -30 bps to borrowers. But they cut their bonus saver account by the full -50 bps. (However, to be fair they left their Notice Saver account unchanged at 3.00%.)

Update: ASB also cut their floating rates by -30 bps, but they cut their signature bonus saver by -40 bps.

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.