\u201cAs a community-owned bank, we\u2019re here to support Kiwi, and this is one of the ways we\u2019re showing up for our customers when it matters most. <\/p>\n
\u201cIf you\u2019re not already with TSB, now\u2019s a great time to make the switch.\u201d<\/p>\n
TSB\u2019s new rate comes from a 10-basis-points cut to its one-year fixed loan, down from 4.49%. <\/p>\n
Other retail banks, including ANZ, ASB, Westpac, BNZ and Kiwibank, were all advertising one-year fixed rates of 4.49% as of yesterday evening. <\/p>\n
Penny Burgess, general manager of customer service at TSB, used the announcement to encourage mortgage holders with other banks to make a switch. <\/p>\n
Westpac, BNZ and ASB are advertising a 4.45% rate for their 18-month fixed-term loans, which was the overall lowest rate among retail banks before TSB\u2019s announcement. TSB\u2019s 18-month rate is 4.75% and ANZ\u2019s is 4.49%. <\/p>\n
For six-month term rates, Westpac is advertising 4.89%, ASB 4.85%, BNZ and ANZ 4.79% and Kiwibank 4.75%. <\/p>\n
Of the two-year term rates on offer, BNZ, Kiwibank, ANZ and TSB are advertising 4.49%, and ASB and Westpac are advertising 4.45%. <\/p>\n
After cutting its rates last Thursday, Westpac has the lowest three-year rate advertised among retail banks, 4.75%. ASB, BNZ and ANZ are advertising rates of 4.79%. TSB and Kiwibank, meanwhile, have rates of 4.89%. <\/p>\n
It comes three weeks after the Reserve Bank dropped the Official Cash Rate<\/a> (OCR). <\/p>\n The Reserve Bank\u2019s Monetary Policy Committee said it remained open to further reductions in the OCR, as required for inflation to settle sustainably near the 2% target mid-point in the medium term.<\/p>\n Last Monday, new figures revealed inflation had hit 3%<\/a>. Statistics New Zealand data showed the Consumer Price Index (CPI) increased 3% in the year to the September quarter.<\/p>\n Stats NZ spokeswoman Nicola Growden attributed most of the rise to increases in the cost of electricity, rent and council rates.<\/p>\n Economists had widely expected the annual rate to land at about 3%.<\/p>\n But there was widespread agreement that this would represent a peak in this latest cycle of inflation, allowing the Reserve Bank to look through the breach and cut the OCR again in November.<\/p>\n