Kiwibank tagged posts

New Round of Rate Cuts Begin

February 19, 2009 New Zealand Finance  No comments

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 m...

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Banks Drop Rates in OCR Anticipation

January 15, 2009 New Zealand Finance  No comments

Several prominent New Zealand banks have cut their home loan rates in anticipation of a January 29 Official Cash Rate (OCR) cut.

ANZ National Bank, BNZ and Kiwibank have all cut their home loan rates on the 14th and 15th of January, other banks are expected to follow. It is expected by many that the New Zealand reserve bank will cut the OCR by another percentage point in its next meeting. The current rate is 5%. Westpac bank went so far this week as to predict further post January cuts which will see the rate drop to 2.5% in 2009.

The new speculation of cuts is based on economist’s analysis of the New Zealand economy. Even with upcoming tax cuts, newly installed tax credits and the upcoming “Summit on Employment” aimed at stimulating the economy, many predict stark times ahead.

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Official Cash Rate Cut

October 23, 2008 New Zealand Finance  No comments

The Reserve Bank has cut the Official Cash Rate (OCR) to 6.5%.

On Thursday 23rd of October, the Reserve Bank Governor, Alan Bollard, stated that the OCR is cut by 100 basis points, or 1 %, bringing the rate to 6.5%. While this move may seem counter-intuitive considering New Zealand’s recent level of high inflation, the aim of the move was to counter-balance the oncoming times of credit tightening and fears. Governor Alan Bollard said in a statement, that New Zealand is likely to face an oncoming time of low export demand and decreased levels of credit availability. He also predicted a time of decreased consumer and business spending, justifying the OCR rate cut decision...

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Kiwibank Privatization Proposed

October 21, 2008 New Zealand Finance  No comments

Leader of NZ First Winston Peters has put forward the proposition that the Government owned Kiwibank be privatized.

In a speech given in Tauranga on the 20th of October Winston Peters, proposed that the Kiwibank be used as stand-alone commercial bank, separate from the Government. Further to his plan, the bank would handle of the Government’s business, which he valued at $55 billion, and the shares in the bank could only be held by New Zealanders. Winston Peters claimed that this would help profits from this activity stay in New Zealand and force interest rates to lower.

It would seem that this plan has been forming for at least a week, as Winston Peters hinted at revolutionary measures to reduce interest rates while at a speaking engagement at Waikato University a week earlier.

Natura...

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