Banks are starting to drop their interest rates with ANZ taking the first stance at 2.79% for one year and 2.95% for two years, and naturally the other mainstream banks are following suit.
Today Westpac announced their new interest rate of 2.79% for one year, matching ANZ while also dropping their two year rate to 2.79%.
However, there were two more announcements that we didn’t see coming.
ASB is dropping their two-year rate to 2.69%. This is the lowest across all banks, thus making them possibly the most attractive lender in the market.
BNZ took a different approach by dropping both their three-year and four-year interest rates to 2.99%. It doesn't help that BNZ has tightened up its lending policy, but this is the first time we've seen so many options available sub 3%.
Will this be the lowest we’ll see going forward, or will Kiwibank make their announcement soon that will drive this rate war even lower? Watch this space.
