Westpac was the first bank out of the blocks following the 50 basis point cut in the Official Cash Rate to 2.50% by the Reserve Bank this morning. Westpac cut its six month mortgage rate by 40 basis points to 5.39%. (Update 1 to include Rabobank announcement) The rate will be effective from Friday. As it stands, the new Westpac rate will be the lowest six month mortgage rate offered in New Zealand. Rabobank announced on Thursday afternoon that it will lower the variable base rate on its rural loans by 0.50% per annum, passing on the 50 bp cut in the Official Cash Rate this morning. The new rate will be effective from May 15, Rabobank said. "These remain challenging times for the rural sector in New Zealand and further interest rate reductions will assist farmers in a year where cash flows in many sectors are very tight," Rabobank's general manager for Rural New Zealand Ben Russell said. See all rates and changes on our mortgage rates page.
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