Banks slash rates after historic OCR cut

ASB moved first yesterday and slashed its two year fixed rate to 3.75% from 3.85%. The rate is effective this morning.

Craig Sims, executive general manager, of ASB's retail arm, said the record low rate environment made it the perfect time for borrowers "to review their home loan to see if they can increase their financial wellbeing".

Sovereign followed suit, slashing its two year special fixed rate to 3.75%, effective this morning. It joins ASB as the cheapest two year option on the market as of August 8.

BNZ's has signalled its two year fixed rate will drop to 3.75%, a move of 4 basis points. But the changes do not come into effect until Monday for new customers, and August 16 for existing customers.