10 lenders cut short-term rates
All of these lenders cut the one-year rate by 50 basis points among other changes which lead to the median for the major banks dropping from 6.45% yesterday morning to a 5.95% median today. The floating rate median is now higher as a result at 6.20%.
The changes by lenders have been made in response to the sudden drop in swap rates following last week's earthquake as the markets expectations around the Official Cash Rate (OCR) changed to predict a cut by the Reserve Bank.
Westpac was quick off the mark in the wake of ANZ/National's changes yesterday, dropping its six-month and one-year rates by 50 basis points to 5.75% and 5.95%, its 18-month rate by 40 basis points to 6.29% and its two and three-year rates were cut by 10 and 11 basis points respectively to 6.49% and 6.99%.
ASB, BankDirect, Sovereign & NZ Home Loans also reduced six-month and one-year rates by 50 basis points, 18-month rates by 35 basis points and two and three-year rates were cut by 20 basis points.
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