Banks slash floating lending and deposit rates after 25bp OCR cut

Kiwibank, for example, cut its variable mortgage rates, business lending rates and its deposit rates by the same 25 basis points, BNZ cut its floating mortgage rates while ASB Bank also cut its floating mortgage, business and deposit rates by the same amount.

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“We expect our reduced variable rates will appeal to customers choosing to float their lending in part or full, as we see Kiwi considering their options carefully,” said ASB personal banking general manager Adam Boyd.

The RBNZ’s monetary policy committee (MPC) noted that while it has cut interest rates “at pace, household spending and residential investment have remained weak,” adding that increasing global trade barriers in the form of US President Donald Trump’s chaotic tariffs policies are weakening the growth outlook.