NZ's largest bank cuts some fixed home loan interest rates

ANZ NZ has cut some of its fixed home loan interest rates, effective tomorrow.

The bank's one-year standard fixed rate has dropped 14-basis-points to 5.25%.

Its two-year and three-year standard fixed rates have both dropped by 20-basis-points, and are now at 5.89% and 6.09% respectively.

ANZ NZ's special one-year rate has dropped by 14-basis points to 4.65%. The two-year and three-year fixed special rates were dropped by 20-basis-points to 5.29% and 5.49% respectively.

In a statement, ANZ managing director for personal banking Grant Knuckey said the decreases to the bank's fixed rates were a response to a fall in wholesale interest rates.

"Global events continue to influence wholesale rates, which have come off a little as the US enters peace talks with Iran."

When reviewing interest rates, the bank said it considered a range of factors, which included OCR changes and changes in wholesale interest rates, market competition and balancing the needs of borrowers and savers.

The Reserve Bank held the Official Cash Rate at 2.25% in its most recent review on May 28 but signalled interest rate hikes were "very likely" ahead. The next OCR review will be announced by the Reserve Bank on July 8.

Last week, Westpac NZ also cut some of its home loan interest rates.

At the time, Westpac NZ managing director of product in sustainability and marketing Sarah Hearn said: "Positive geopolitical developments in the last few weeks have brought our longer-term funding costs down."

"We’re moving quickly to pass savings on to borrowers."