New Round of Rate Cuts Begin
February 19, 2009 New Zealand Finance
New Zealand banks are yet again beginning to cut their interest rates in anticipation of the April 11th Reserve Bank Official Cash Rate (OCR) review.
Leading the foray in pre-OCR cuts is Kiwibank, being the first to announce on the 19th of February that they would yet again be reducing rates. They were soon followed by Westpac Bank, other banks are yet to make similar statements.
The Kiwibank variable home interest rate has been reduced from 6.49 to 5.99 percent. As early as five month ago this figure was at 10.22 percent. Kiwibank has set their home loan interest levels at the lowest they have been since the bank’s inception. Similarly, Westpac has reduced their rate to 6.49 percent.
In regards to the cut, Kiwibank Chief Executive Sam Knowles has stated that the current interest rate market is extraordinary. His Westpac counter part, Bruce McLachlan is saying that the market is already pricing in the anticipated interest rate cuts, although numerous uncertainties about the move are still present.