Banks in New Zealand have cut home loan rates ahead of the Reserve Bank of New Zealand's monetary policy statement on December 4.
Kiwibank and Westpac both chopped 75 basis points off their variable rate home loans, bringing Kiwibank's variable rate down to 7.95 per cent, and Westpac's down to 8.7 per cent. The cuts are immediate for new and existing customers.
Kiwibank chief executive Sam Knowles said it was clear there would be a substantial cut to the Official Cash Rate (OCR) in early December and the bank didn't want to sit and wait.
The moves are in response to lower wholesale rates occuring over the past week and Westpac New Zealand acting chief executive Bruce McLachlan said the bank was "committed to supporting our customers."
The offiical cash rate in New Zealand was cut by one per cent in October to 6.5 per cent, and analysts are predicting another 0.50 per cent cut in December.
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