One bank war

On Monday morning ASB dropped its 2 and 3-year fixed rates by 15 basis points, and its 4-year rate by 5 points in what looked like a sign it would take Kiwibank on.

However before morning tea on Monday those changes had been reversed.

This is perhaps a sign that the big banks are now becoming more loathe to get into straight out price wars with some of their smaller bank competitors.

The other developing trend is that Bank of New Zealand - the aggressor in the fixed rate home loan wars of recent years - is now doing its promotions in the floating rate space.