National Bank and ANZ cut their 6 month mortgage rates by 34 basis points (bps) to 5.45% today, and one-year rates by 29 bps to 5.50%. This follows the 50 bps cut in the Official Cash Rate to 2.50% by the Reserve Bank on Thursday last week and is the first sign of a crumbling of the resolve of banks not to pass on the OCR cut to short term fixed mortgage rates. (Update 2 includes announcement on term deposit rate cuts.) ANZ and National Bank are the first banks to cut one year mortgage rates following the OCR cut. Last week Westpac cut its 6 month rate to 5.39%. None of the banks have yet moved on their variable mortgage rates, although CBS Canterbury and PSIS have. ANZ and National Bank's new one year rate is the lowest standard one year rate offered in New Zealand by a bank. BNZ offers its Classic one year rate at 5.49%, for which some conditions apply. ANZ on its own also offers a three month rate, cut by 30 bps to 5.35%. ANZ's new rates will be effective from Friday, and National Bank's cuts are effective from today. Click here to go to our mortgage rates page. Later on Thursday, ANZ National announced it would also cut a wide range of its term deposit rates, both short and long term. Notable changes were 1 year rates down 50 basis points to 4%, and ANZ's 2 year rate down 75 bps to 4.50%, bringing it in line with National Bank's. Three and four year rates were cut 25 bps to 5% and 5.25%, respectively. See here for all the short term rate changes. and here for terms one year and greater.
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