BNZ has now revealed its response to the -25 bps OCR cut that the Reserve Bank announced on Thursday.
They are following ANZ’s lead and only passing on -5 bps to their customers on a floating rate.
This changes its rate to virtually the same as offered by Westpac, and almost 40 bps higher than the rate offered by Kiwibank.
“At BNZ we strive to get the balance right to meet the needs of our customers,” said Craig Herbison, BNZ’s director of retail and marketing. “There are a range of factors that influence whether bank increases or decreases its interest rates and the OCR is one of those. Other considerations are costs, the volatility of offshore markets and the requirement to hold greater capital. We are pleased to be able to offer an increase in the 18 month term deposits for savers.”
“The majority of our customers are on fixed rates, which are often lower than the rate card for floating, or are offsetting their floating rate with our TotalMoney home loans. Now is the time for people with home loans to take advantage of the lowest rate in a generation and come and talk to us about paying off their mortgage faster.”
BNZ’s announcement is salved by a +30 bps rise in their 18 month term deposit offer. (Details here.)