9 August 2004
Media release – for immediate use
Bank of New Zealand has best two-year fixed interest rate in the market despite rates rise
Bank of New Zealand has announced an increase in its variable, six-month, and one-year fixed rate home loans from today. Bank of New Zealand’s variable rate will increase by 0.25% to 8.25%, its six-month rate from 7.10% to 7.35%, and one-year rate from 7.25% to 7.50%.
The bank’s remaining fixed interest rates are unchanged.
The increases reflect a rise in the cost of borrowing for the bank. The Reserve Bank raised the official cash rate from 5.75% to 6.00% on Thursday 29 July 2004. Westpac were the first to increase their variable interest rate after the official cash rate rise, with ASB following suit. Westpac and ASB have moved to 8.35% and 8.25% respectively.
Bank of New Zealand’s general manager for business development and strategy, Andrew Whitechurch, says that despite the rates increase, Bank of New Zealand’s two-year fixed rate remains the most competitive of the major lenders.
“We’re recommending that in the current economic climate, customers fix for two years. We’ve intentionally left our two-year fixed rate unchanged, so with the most competitive two-year fixed rate on the market, it’s an easy choice for customers to make.”
Bank of New Zealand’s two-year rate is 7.40%, at least 0.10% lower than any of the other major banks.