{"id":62624,"date":"2025-10-06T21:45:09","date_gmt":"2025-10-06T21:45:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/62624\/"},"modified":"2025-10-06T21:45:09","modified_gmt":"2025-10-06T21:45:09","slug":"bnz-cuts-mortgage-rates-to-match-rivals-ahead-of-ocr-announcement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/62624\/","title":{"rendered":"BNZ cuts mortgage rates to match rivals ahead of OCR announcement"},"content":{"rendered":"

ASB, ANZ and Westpac cut their two-year fixed rates to 4.65%.<\/p>\n

The five major banks, including Kiwibank, dropped their one-year rates to 4.49%.<\/p>\n

Kiwibank currently has the best six-month home loan rate at 4.85%, for those with minimum 20% equity. <\/p>\n

Markets have priced in another OCR reduction on Wednesday as a certainty<\/a>, but uncertainty remains around the size of the cut, with economists divided over a 25bps or 50bps cut.<\/p>\n

At its last meeting in August, the Reserve Bank (RBNZ) published a new rate track for the OCR, suggesting two more rate cuts are expected by March next year, taking it to 2.5%.<\/p>\n

However, ASB chief economist Nick Tuffley has argued the OCR needs to get down to 2.25%.<\/p>\n

\u201cThe fire of recovery needs more accelerant. The OCR needs to go lower than recently thought\u2026 to get monetary conditions more into stimulatory territory,\u201d Tuffley said.<\/p>\n

Kiwibank economists said broad-based weakness in the Kiwi economy warranted \u201ca bold move\u201d on Wednesday.<\/p>\n

The OCR, which sits at 3%, has fallen 250bps since August last year, when it was 5.25%.<\/p>\n

Nathan Miglani, managing adviser at Squirrel mortgage brokers, told the Herald that interest rates would need to get below 4% to get people moving again.<\/p>\n

\u201cWith the way things are going and what we are sensing, business confidence is still low, the GDP last quarter didn\u2019t help\u2026 I reckon now to move people back to start spending money on hospitality, retail, I think the rates need to be sub-4%,” he said.<\/p>\n

Miglani said he would not be surprised to see a one-year mortgage rate of 3.99% in the next six months.<\/p>\n

Listen and subscribe to the Today in Business<\/a> podcast – the top headlines from the NZ Herald business team summarised and delivered by an AI voice as an easily digestible recap.<\/p>\n","protected":false},"excerpt":{"rendered":"ASB, ANZ and Westpac cut their two-year fixed rates to 4.65%. The five major banks, including Kiwibank, dropped…\n","protected":false},"author":2,"featured_media":62625,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[3017,9344,1396,28500,6932,10666,14134,42,1345,18060,10543,16400,43,4061,10667,1118,5908,19257,7676,1041,9424,61,51183,40,38,41,39],"class_list":{"0":"post-62624","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-ahead","9":"tag-announcement","10":"tag-banks","11":"tag-bnz","12":"tag-cash","13":"tag-cuts","14":"tag-decision","15":"tag-headlines","16":"tag-home","17":"tag-loan","18":"tag-match","19":"tag-mortgage","20":"tag-news","21":"tag-number","22":"tag-ocr","23":"tag-of","24":"tag-official","25":"tag-rate","26":"tag-rates","27":"tag-rival","28":"tag-rivals","29":"tag-to","30":"tag-tomorrows","31":"tag-top-news","32":"tag-top-stories","33":"tag-topnews","34":"tag-topstories"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/62624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=62624"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/62624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/62625"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=62624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=62624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=62624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}