Kiwibank becomes first bank to cut rates after New Zealand's post-OCR decision
After the Reserve Bank of New Zealand held its Official Cash Rate unchanged, Kiwibank has become the first major bank to adjust home-loan rates, RNZ reported. The cuts apply to certain fixed-rate terms. Consumer groups will watch whether other banks follow the move.
After the Reserve Bank of New Zealand held its Official Cash Rate at 2.25% this week, Kiwibank became the first large bank to adjust home-loan rates, RNZ reported. The cuts have largely been applied to one- and two-year fixed-rate terms. The bank said the decision was aimed at easing the interest-rate pressure its customers have felt in recent months.
Reserve Bank Governor Christian Hawkesby said in remarks this week that the bank expected the cash rate to move towards a 'neutral' level over the coming period. Banking analysts quoted by RNZ said that other large competitors could follow Kiwibank's step. Major banks including ANZ, Westpac and ASB are seen as likely to make similar moves in the coming days.
Consumer groups stressed that lower rates could be a positive development for homeowners and prospective buyers, but said the balance in the property market should also be monitored. The New Zealand housing market has fluctuated between price rises and declines in recent years. The assessments in this article rely on the source's reporting and are not a substitute for professional financial advice on personal home-loan or investment decisions.
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