Well it had to happen – another price war looks like breaking out, and once again it is the Bank of New Zealand which is starting the fight.
Tuesday, March 1st 2005, 5:39AM
by The Landlord
BNZ has announced that it is running another “Unbeatable” campaign, offering a two-year rate of 7.60%, which is 20 basis points lower than the other trading banks.
The move is interesting as the bank’s own economist, Tony Alexander, has been saying for a number of weeks running that fixing for three years is his preferred option.
While the move is being packaged by the bank as the start of another campaign, the reality is a little different. It’s not cutting its rates, it’s just not putting them up.
Its two-year rate has been sitting at 7.60% since just prior to Christmas when it ended its last campaign.
In recent weeks many lenders have increased their fixed rates by 20 basis points, but BNZ is signalling it isn’t going to move its two-year rate. This is despite the fact that the cost of funding home loans is increasing.
This is reflected in by the fact that it has increased its three, four and five year rates today (Monday) to 7.80% each – the same as other trading banks.
