Slight relief for mortgage holders as bank trims rates again

ASB, one of New Zealand’s major banks, hs trimmed back some of its mortgage rates for the seventh time this year.

This morning, the bank dropped its six-month, one-year, and four-year rates by up to 10 basis points.

Its six-month term dropped five basis points, from 7.29% to 7.24%, with the one-year term trimmed back by 10 basis points to 7.14%.

The bank's four-year mortgage rates also dropped six basis points to 6.49%.

“We’ve reviewed our interest rates in line with the recent dip in wholesale rates,” ASB executive general manager personal banking Adam Boyd said.

“We know these rate reductions on some of our most popular terms will be of serious interest to our home lending customers looking to refix, as well as potential first home buyers.”

ASB also dropped its six-month and nine-month term deposit rates by 10 basis points each.

Interest rates have stayed high after The Reserve Bank has continued to hold the Official Cash Rate at 5.5% as it battles to control inflation.

The annual rate of inflation showed a 4% rise in the Consumer Price Index (CPI) in 12 months to the March quarter. Though falling, this is still above the Reserve Bank's 1-3% target.

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