Westpac announces withdrawal
10 December 2004
Westpac announces withdrawal of 18 and 30 month special rates
Westpac has today announced that it will remove its 6.99% 18-month and 7.19% 30-month special fixed rates from 5pm 17 December.
The move occurs in the wake of indications from the Reserve Bank of New Zealand, surrounding its Thursday decision not to change the Official Cash Rate (OCR) from 6.5%, that persistent strength in the New Zealand economy meant that an OCR increase was more probable than a reduction in the near term.
Competition on fixed-rate pricing was based on an early easing in the rates.
Westpac has previously said that the current fixed-rate price ‘war’ is unsustainable. The removal of the special rates reflects the bank’s belief that, given the RBNZ’s view of near-term prospects, a lead needs to be taken on returning fixed rates to a more sustainable level and, further, that price is only one element of a customer relationship.
New rates for the 18-month and 30-month terms will be advised on 17 December.