ASB has joined Kiwibank in cutting interest rates to below three per cent.
ASB is offering a two-year rate of 2.99 per cent.
The bank's chief economist Nick Tuffley said the changes would hopefully boost the economy and help borrowers grappling with the effects of Covid-19 disruption on personal finances.
“The Reserve Bank has taken concerted actions to push interest rates down, and these are clearly bearing fruit by enabling mortgage rates to fall to even lower levels,” says Mr Tuffley.
“Lower interest rates like ASB’s two-year special rate will put cash into the pockets of the mortgage belt, helping to stimulate and restart the economy. Lower borrowing rates will also help to further alleviate any financial worries that borrowers may have."
ASB's move come after Kiwibank announced a one-year "special" of 2.99 per cent.
According to the New Zealand Bankers Association website in an update yesterday, 105,035 loans had been reduced or payments deferred on them totalling loans worth $36.9 billion, due to Covid-19 woes.
Those includes home loans, personal lending, credit cards and arranged overdrafts.
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