Kiwibank Responds To OCR Cut

4 December 2008

Media Release

Kiwibank Responds To OCR Cut

Kiwibank has reacted immediately to the cut in the Official Cash Rate by reducing all home loan rates. The bank is now offering a one-year fixed rate of 6.49% p.a. and a variable rate of 7.45%.

The bank had made significant cuts to its rates in late November in anticipation of the move by the Reserve Bank. Kiwibank Chief executive Sam Knowles said the decision by the Reserve Bank to make a cut of 1.5% gives Kiwibank room to pass on further savings to those with home loans.

“In the space of two weeks we have been able to bring down our variable rate from 8.70% to 7.45%. We have also brought the key short-end fixed rates below 7%.”

Mr Knowles said the bank has not been able to offer such low home loan rates for four years.

The new rates effectively immediately for new customers are: Variable 7.45%; six months 6.99%; one year 6.49%; two years 7.19%. The fixed rates require 20% or more equity in the property.

ENDS

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