NZDMO cuts Kiwi Bond rates by 50 bps to 2.5%

Banks are not passing on last week's cut in the Official Cash Rate in the form of lower deposit rates, but the New Zealand Debt Management Office (NZDMO) has. The NZDMO announced it had cut the rates for its 6 month and 1 year Kiwi Bonds (government bonds) by 50 basis points to 2.5% immediately. The rate for two-year Kiwi Bonds would remain at 3.0%, it said. "Kiwi Bond interest rates are set periodically from moving averages of domestic wholesale rates. The new rate has been set in response to recent changes in wholesale market interest rates," it said. There is a minimum subscription for Kiwi Bonds of NZ$1,000 and a maximum of NZ$500,000.