22 Dec 2023

ASB joins ANZ and BNZ in lowering mortgage rates

10:40 am on 22 December 2023
ASB bank

Photo: RNZ / Marika Khabazi

ASB has dropped its mortgage rates.

The bank on Friday decreased its two-year rate from 7.05 percent to 6.89 percent; and its three-year rate down to 6.75.

ASB has also lowered some of its long-term deposits.

Spokesperson Adam Boyd said the drop reflected a recent fall in wholesale rates.

ASB's home lending and term deposit rate changes were effective from Friday.

BNZ lowered its standard two-year fixed rate by 16 basis points to 7.49 percent and its three-year fixed rate by six basis points to 7.39 percent on Thursday. It also lowered special mortgage deals.

Earlier this week, ANZ cut some lending and deposit rates because of a fall in wholesale rates, which partly fund banks' lending.

The Reserve Bank in November kept the official cash rate at 5.5 percent, where it has been since May, repeating that inflation was slowing under the pressure of its rate rises, but was still too high.

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