SBS Bank has made cuts to all its fixed term rates of one-year or more. Its biggest reduction was made to its five-year rate of 25 basis points followed by a 15 point cut to its three-year rate, 10 points off its two-year rate and its one-year dropped by 4 points to 6.25%.
TSB Bank has now cut its two-year rate by 6 points to 7.09% only a couple of days after it made cuts to its four and five-year rates.
Economists review last Thursday’s Official Cash Rate (OCR) announcement this week with comments by the Reserve Bank on the new interest rate environment the centre of attention. Tony Alexander also looks at what will happen to one, two and three-year fixed rates if the OCR rises on either June 10 or September 16.
