More banks are trimming mortgage rates ahead of the Reserve Bank’s official cash rate announcement this week. By Susan Edmunds, RNZ
BNZ on Tuesday cut several fixed-term rates — dropping its six-month rate by 10 basis points to 4.89%, its 18-month rate by 26 basis points to 4.49%, and its two-year rate to 4.65%. The bank’s three-year rate also fell to 4.85%.
Earlier, Kiwibank reduced its one-year rate to 4.49%, aligning with other major lenders, while trimming its two-year rate to 4.69% and three-year to 4.99%.
Kiwibank economists said a more stimulatory Official Cash Rate (OCR) was essential to spur business investment and household spending. They forecast the OCR would fall to around 2.5% by Christmas, with risks leaning toward a 2% rate.
ISSUE
Friday, October 3, 2025
Volume 16 . Issue 79
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