ASB Bank has followed suit with short-term rate cuts by lowering its longer-term mortgage rates. Specifically, the bank reduced its three-year and four-year rates by 26 and 10 basis points respectively. In addition to these cuts, ASB has reduced its longer-term term deposit rates, ranging from 10 to 20 basis points each.
This is in line with recent moves by BNZ and Kiwibank who have also adjusted downwards their interest rates. This comes amid market expectations of a downward trend in wholesale rates. Alongside these predictions, industry leaders anticipate a dip in inflation falling into the Reserve Bank of New Zealand’s (RBNZ) target range in the forthcoming year. This might prompt a cut in interest rates by the central bank by year-end.
A quarterly survey by the RBNZ, although having a small participant base of 37 respondents, but considered credible by the bank, echoes these expectation. The survey sees inflation slowing from its current 3.22 percent to 2.73 percent in the next 12 months, representing the lowest figures since September 2021.
Key Facts The proposed government policy changes could have led to increased mortgage bills for home owners and property investors in New Zealand. Concerns were raised over potential inflationary pressures…