BNZ drops fixed and variable home loan rates ahead of OCR decision
BNZ was confident of a cut to the OCR.
Photo:
RNZ / Marika Khabazi
The BNZ has cut fixed and variable home loan rates ahead of the Reserve Bank's decision on interest rates.
The Reserve Bank is widely expected to make a 25-basis point cut to the
official cash rate
on Wednesday, dropping it to 3.25 percent.
The BNZ said it was lowering its one- and two-year fixed home loan rates to 4.95 percent effective Tuesday.
BNZ general manager home lending James Leydon said the bank was confident of a cut to the OCR.
"By cutting our fixed rates across all terms, we're giving customers more choice and the ability to lock in a competitive rate for a longer period," he said.
"Lower interest rates should also help relieve some pressure on household budgets by making borrowing more affordable."
The 18-month fixed rate was reduced to 4.89 percent, while the standard variable rate was dropped a quarter of a percentage point to 6.44 percent.
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