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Kiwibank is cutting all its fixed home loan rates by up to 0.51% after Reserve Bank left the official cash rate alone yesterday.
From today, all home loan rates at the state-owned bank are between 0.10% and 0.51% lower.
Reserve Bank Governor Alan Bollard yesterday opted to leave the official cash rate unchanged at 2.5% yesterday, stressing the local risks from offshore economic and financial turmoil.
Dr Bollard's terse statement gave no hint as to the likely timing or path of those possible increases if offshore problems turn out to have only a mild impact on the economy.
Kiwibank Chief Executive Paul Brock said the decision to cut rates reflected the expectation rates will stay low for the time being.
“We think that the right thing to do in this market is pass on the benefit of lower rates for all customers whenever we can,” said Mr Brock.
Kiwibank's mortgage rate changes are:
- 6 months cut by 0.10% to 5.65%
- 1 year cut by 0.15% to 5.65%
- 2 year cut by 0.41% to 5.89%
- 3 year cut by 0.31% to 6.39%
- 4 year cut by 0.51% to 6.79%
- 5 year cut by 0.41% to 7.19%.