BNZ takes rate war to six-month term

Its biggest cuts are to six-month rates for its Standard and Global Plus loans. They have each come down 124 basis points with the Standard rate dropping from 8.59 % to 7.35%. Its sharpest rate is a new Classic six-month rate of 6.99%. This replaces the one year Classic rate of 7.99%.

The move comes in advance of the Reserve Bank’s next official cash rate announcement which is due next Thursday.

Economists, as reported on Good Returns, are expecting a 100 basis point cut to the OCR, however a couple, including Goldman Sachs JB Were and Deutsche Bank are suggesting the next cut could be has big as 150 basis points.

What is interesting is that a variety of pricing strategies are emerging from lenders as rates fall.