16 May 2024

ASB latest bank to drop mortgage rates

9:55 am on 16 May 2024
Blue house pointing up and red house pointing down.

Photo: RNZ

ASB has reduced its longer-term mortgage rates, following last week's cut to short-term rates.

The bank has reduced its three-year term by 26 basis points, and the four-year rate by 10 basis points.

ASB has also dropped its longer-term term deposit rates by between 10 and 20 basis points each.

BNZ and Kiwibank have also recently reduced interest rates, as wholesale rates have trended down.

It comes as industry leaders were picking inflation to fall back into the Reserve Bank's (RBNZ) target band in the coming year, with expectations that the central bank may cut interest rates by the end of this year.

A quarterly survey of a handful of forecasters and company heads - commissioned by the RBNZ - showed expectations were for inflation to slow from 3.22 percent to 2.73 percent in the next 12 months, the lowest pick since September 2021.

Despite its small number of respondents - just 37 - the RBNZ regards the survey as a credible steer on opinion, when looking at inflation and interest rates.

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