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Banks cut rates following RBNZ OCR decision

Banks cut rates following RBNZ OCR decision

(15 June 2015 – New Zealand) Following the Reserve Bank of New Zealand (RBNZ) rate cut on 11 June, the country’s banks were quick to pass on rate cuts, with ANZ Bank, ASB, Kiwibank and Co-operative Bank all immediately dropping their floating mortgage rates.

ANZ said it will lower the interest rates on its floating and flexible home loans by 0.25 percent p.a.

This will mean 6.49 percent for ANZ Floating Rate Home Loans, and 6.60 percent for Flexible Home Loans.

ANZ's managing director retail and business banking Fred Ohlsson, said the new rates would be welcomed by home buyers, particularly first home buyers.

State-owned Kiwibank matched 25 basis point cut in the official cash rate, reducing its floating mortgages rates - variable and revolving - from 6.65 percent p.a. to 6.40 percent p.a.

ASB lowered its variable home loan and Orbit home loan rates by 25basis point from 6.75 percent p.a to 6.50 percent p.a.

ASB senior economist Chris Tennent-Brown said a further cut in the official cash rate is expected at the September review, taking the interest rate to 3 percent.

The Co-operative Bank dropped its floating home loan rate by 25 basis points to 6.45 percent p.a.

"We take our guidance on the direction of interest rates from the Reserve Bank and today they've given a strong signal that the immediate direction of interest rates is downwards," said Co-operative Bank chief executive Bruce McLachlan.

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