BNZ has lowered some of its fixed mortgage rates ahead of tomorrow’s expected cut to the OCR.
Standard 6-month rate, two-year and three-year rates all dropped by 10 basis points, to 4.89%, 4.65% and 4.85% respectively.
Its 18-month rate fell 26 basis points to 4.49%.
The one-year rate, which was earlier cut to 4.49% in line with other banks, did not change.
Nor did the four-year (5.09%) or five-year standard (5.39%) rates.
The new rates were effective from today. Those with less than 20% equity in their property will pay a low equity interest rate premium.
The bank also lowered its term deposit rates this week.
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Yesterday, Kiwibank joined other major banks in lowering some mortgage rates ahead of the widely anticipated cut to the official cash rate on Wednesday.
It joined ASB, ANZ, BNZ, Westpac and The Co-operative Bank, who also had one-year special rates at 4.49%.
Infometrics chief forecaster Gareth Kiernan was among those expecting a 50 basis point cut when the Reserve Bank’s monetary policy committee met tomorrow.
He said a drop of 50 basis points at tomorrow’s OCR review would likely signal another 25 basis point cut on November 26.
“It would be weird for them to do 50 and then stop … so that would add to the downward pressure, too,” he told RNZ.
