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Kiwibank - Source: ONE News
State-owned Kiwibank is cutting its variable mortgage rate by 14 basis points to 5.65% and hiking its 18-month fixed rate by 10 basis points to 6.49%.
A spokesman for the bank said about 30% to 40% of mortgage lending was on the variable rate so the bank wanted to ensure it had a competitive rate.
Market activity suggested there was room to bring the variable rate down a little.
The Reserve Bank of New Zealand's (RBNZ) official cash rate is at a record low of 2.5%.
When RBNZ governor Alan Bollard was asked about the timing of a
rise in the rate on TV One's Q+A programme on Sunday he said "we've
been boringly predictable right through this, we've said about a
year ago that it was going to be some time the middle or the latter
part of the year, and that's what we're still saying".
