ANZ drops home loan rates ahead of OCR decision

Tuesday, 26 November 2024

For home loans, ANZ has reduced interest rates on several fixed terms, with the largest cuts seen in the 6-month and 1-year fixed rates.

ANZ has lowered interest rates on several fixed term home loans and term deposit rates.

The biggest cuts are in the 6-month and 1-year home loan rates.

These changes come ahead of the Reserve Bank’s OCR decision on Wednesday.

ANZ has announced changes to its Fixed Home Loan and Term Deposit rates. These adjustments come ahead of the Reserve Bank of New Zealand's (RBNZ) Official Cash Rate (OCR) decision on Wednesday.

For home loans, ANZ has reduced interest rates on several fixed terms, with the largest cuts seen in the 6-month and 1-year fixed rates.

The 6-month standard and special rates, both drop by 0.26%. The standard rate fell from 7.10% to 6.84%, while the special will come down from 6.50% to 6.24%.

ANZ’s 1-year rates fall by 0.20%, the standard rate from 6.59% to 6.39% and the special from 5.99% to 5.79%

The 18-month rates are reduced by 0.20%, standard to 6.19% and special to 5.59%, and the 2-year and 3-year rates are both lowered by 0.10%.

However, the 4-year and 5-year fixed standard rates remain unchanged at 6.19%.

ANZ has also made adjustments to its Term Deposit and ANZ PIE Fund Term Option rates, with most of the changes occurring in the medium-term deposits.

15 economists have written an open letter to the Govt saying: 'Fiscal policy is needlessly exacerbating the current recession'.

The 90-day term deposit rate drops slightly by 0.05%, from 4.20% to 4.15%, while the 150-day rate falls by 0.20%, from 5.00% to 4.80%.

The 1-year term deposit rate decreases by 0.05%, from 4.80% to 4.75%. Meanwhile, longer-term term deposits see little change.

The 18-month, 2-year, and 3-year rates remain unchanged at 4.55%, 4.45%, and 4.35%, respectively, and the 4-year and 5-year rates stay at 4.30%.

The reductions in term deposit rates are less dramatic than those seen in home loans. Most of the decreases are relatively modest, with the largest drop of 0.25% in the 210-day term.

On Wednesday, the Reserve Bank will announce whether it has decided to lower the official cash rate (OCR) from 4.75%.

When the OCR dropped 50 basis points (bp) in October, interest rates at most major banks fell almost immediately. Economists are widely predicting that we will experience another 50bp cut in the final OCR review of the year.