BNZ has announced it will trim its short-term fixed mortgage rates in the latest move by a major bank to lower them slightly.
This morning the bank cut its shorter-term classic fixed rates (for when a customer has 20% equity in the property) and standard loans by up to 10 basis points.
The bank's new classic six-month rate dropped to 7.29%, and its one-year rate dropped to 7.24%. The 18-month rate fell to 6.89%, and the two-year rate sits at 6.79%.
It has also lowered its one, two, three, four and five year deposit rates.
It follows the Reserve Bank holding the OCR at 5.5% last week.
All the major Australian-owned banks have lowered some interest rates slightly over the past fortnight.
ABS's executive general manager of personal banking, Adam Boyd, said when lowering some mortgage rates on Monday that the reductions “in part reflects how swap rates have responded to the Reserve Bank's decision to hold the Official Cash Rate at 5.50%".
ANZ said its changes were also in response to a recent decrease in retail swap rates.
"Interest rates will continue to be reviewed in response to international and local market conditions. When reviewing interest rates we consider a range of factors, including the impact on customers, the underlying cost of funds (including wholesale rate movements) and competitor activity."
Last week, the central bank said the OCR was likely to remain at a restrictive level for a "sustained period of time" to return inflation to the 1 to 3 per cent target.
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