Major bank ASB has reduced its 18-month mortgage rate to 6.89%, dropping 26 basis points from 7.15%.
ASB executive general manager Adam Boyd said: “This competitive 18-month rate will be good news for people looking to hedge their bets in the current economic environment."
The ASB shift came a day ahead of the February Monetary Policy Statement and Official Cash Rate (OCR) announcement from the Reserve Bank.
"Whilst we don’t know the direction of the OCR," Body said, "wholesale rates remain elevated and the geo-political environment remains volatile. Our 18-month rate may appeal to customers who want to balance security with flexibility.”
Last Thursday, BNZ lowered a number of its home loan interest rates, continuing the trend among leading banks in recent months. All its standards fixed mortgage rates were lowered except for the six-month figure.
The bank's standard one-year fixed rate was cut from 7.95% to 7.89%, the standard 18-month fixed rate was cut from 7.75% to 7.59% and the standard two-year fixed rate was cut from 7.49% to 7.45%.
Westpac also recently announced it was decreasing a number of its interest rates.
Westpac said its one year, three year, four year and five year special fixed home loan rates would decrease by 10 basis points, while its 18 month special fixed home loan rate will fall by 20 basis points.
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