Just like their Aussie bank parents, New Zealand’s largest lenders have held onto the lion’s share of today’s 0.25% cut to the official cash rate (OCR), while simultaneously pushing-up deposit rates. From Interest.co.nz:
ANZ announced today it will lower floating home loan rates by 0.05% p.a. to 5.59% p.a. but will increase rates for some term deposits by up to 0.30% p.a. to 3.60% p.a…
Westpac was the second bank to move, saying it’s cutting its floating mortgage rate by 10 basis points to 5.65%… Westpac’s also introducing a “special” six month term deposit rate of 3.50%, an increase of 50 basis points…
State-owned Kiwibank has bucked the trend, however, cutting its floating mortgage rates by between 20 and 25 basis points.
The New Zealand banks retained around 15 basis points of the 50 basis points of OCR cuts in December and March.
