Westpac NZ is passing on today's official cash rate reduction to floating rates for home loan and business customers, including agri.
Alongside the 0.50% cuts to floating home loan rates, Westpac has also cut advertised fixed home loan rates, including a 0.20% drop in the 1-year special rate to 5.79% p.a., and a 0.16% drop in the 2-year special rate to 5.49%. Some term deposit rates are also being trimmed.
Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says the bank is moving swiftly to pass on the benefits of falling rates in a highly-competitive environment.
"Today's OCR cut will bring further relief for homeowners, businesses, farmers and growers," Ms Hearn says.
"We've cut our advertised floating housing rates by 1.25% p.a. following recent OCR reductions, with potential interest savings of $118m for our 62,000 floating home loan customers over the next 12 months.
"Our business, SME and agri customers have also seen rates fall in recent months, which will help farmers and growers save an average of nearly $2,000 a month each in interest costs.
"Additionally, more than a quarter of our fixed home loan customers will have rolled onto lower rates by the end of the year.
"We're also supporting savers by not passing on today's full 0.50% OCR reduction to our Notice Saver offering. The new rate of 3.75% p.a. is a very attractive short term rate for customers who don't want to lock their money away in a term deposit for a longer period."
Despite the optimism generated by falling inflation and interest rates, Ms Hearn acknowledges some customers will still be concerned by the recent rise in unemployment.
