Another bank trims some mortgage, deposit rates

Kiwibank has become the latest bank to trim some of its mortgage and term deposit rates.

As of today, special rates and standard rates for six-month and one-year fixed home loans have been cut.

For special rates, which require a minimum 20% equity, a six-month fixed loan has dropped to 7.25% from 7.35% while one-year fixed loan rates dropped from 7.25% to 6.99%.

The bank’s one-year standard rate dropped from 8.25% to 7.99%, and its six-month rate dropped from 8.35% to 8.25%.

Term deposit rates have also seen a slight drop.

A six-month term deposit of more than $10,000 dropped from 6.15% to 6.05%, the rate for 200 days dropped from 6.05% to 6.00%, nine-month deposit rates dropped from 6.10% to 6.0%, and one-year rates dropped from 6.00% to 5.90%.

For deposits between $5000 and $9999, the six-month rate dropped from 6.05% to 5.95%, the 200-day rate dropped from 5.95% to 5.90%, nine months to 5.90% from 6.00%, and one year from 5.90% to 5.80%

It comes after ASB last week trimmed some of its mortgage rates for the seventh time this year.

Interest rates remain high, with the The Reserve Bank continuing to hold the Official Cash Rate at 5.5% as it battles to control inflation.

The annual rate of inflation showed a 4% rise in the Consumer Price Index (CPI) in 12 months to the March quarter.

Though falling, this is still above the Reserve Bank’s 1-3% target.