Official Cash Rate Cut by 1%

9.15am 23/10/08 The Reserve Bank has slashed the official cash rate (OCR) this morning by a full 1%.

He has also indicated a bias towards further rate cuts going forward.

He noted “New Zealand can expect to face lower demand for exports and credit is likely to be less readily available”.

Under normal circumstances one would expect home loan Floating interest rates to drop by 1% forthwith.

Lets see what the Banks actually pass on to customers.

11.45am 23/10/08  ASB Bank has announced rate cuts across all fixed interest rates.

The most notable being 6 months fixed down from 9.25% to 7.99%.

Unusually there is no change to their floating interest rates though.

6.20pm  ANZ has announced fixed interest rate declines. But also no change to their floating interest rates.

Westpac announced a floating interest rate decrease but no changes to fixed interest rates.

Kiwibank has cut their home loan interest rates across the board.

We expect some further jockeying for position over the next week amongst the banks.

5pm 24/10/08 ANZ have followed up today with full 1% cuts off floating and revolving credit interest rates.