Banks drop interest rates ahead of OCR
Banks have already started to cut their interest rates.
Photo:
RNZ
Banks have already started to cut their interest rates, ahead of an expected drop in the official cash rate (OCR) on Wednesday.
BNZ moved on Tuesday, offering a 4.95 percent rate for one year and two years and 4.89 percent for 18 months.
On Wednesday morning, ANZ was offering app users 4.89 percent for one year, 4.85 percent for 18 months and 4.92 percent for two years.
Mortgage adviser Glen McLeod said he was hoping rates would drop a little further so the three-year rates on offer could dip below 5 percent.
He said, with the prospect of another couple of 25bp rate cuts being discussed by economists, borrowers were having to decide whether to fix or wait.
"If we do wait, are we going to get much more?"
The margin banks were making on their rates had dropped, McLeod said.
He said he had been advising some clients to stick to discounted floating rates for a little bit longer. "It's usually the week after the OCR that we see discounted rates starting to show. This is the firs time in a while that we've seen them start to drop rates before."
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