ANZ Bank New Zealand has announced changes to business lending, floating and fixed home loan interest rates, and interest accruing on savings accounts and term deposits.
The bank’s managing director for business and agri, Lorraine Mapu, said the recent lift in consumer confidence and a drop in wholesale rates were encouraging signs, but inflation had not been beaten yet. However, following the Reserve Bank of New Zealand’s July Official Cash Rate announcement, ANZ saw a drop in wholesale rates to pass on further savings to its customers.
In response to decreases in wholesale swap rates and the reduction in home loan rates, ANZ decreased savings rates by 15 basis points and term deposit rates between 10 and 30 basis points for terms of one year and longer. The five-month term deposit rate has increased by 50 basis points.
Term deposits set at over 18 months have all been reduced by -0.30%, including the five-year and four-year (now at 4.70%), the three-year (now at 4.80%), the two-year (now at 5.05%), and the 18-month (now at 5.30%) term deposit rates of return. The bank’s one-year term deposit has also been slashed by -0.10%, now 5.60%.
Serious saver accounts have also been cut across the board, with the standard interest decreasing by -0.05% p.a. and the premium interest rate interest decreasing by -0.10% p.a., meaning it is down to 3.15% p.a. The total available interest rate has been cut by -0.15% p.a. to 4.35% p.a.
Business floating interest rate changes include the business overdraft base rate (now at 15.55% p.a.), the business bank indicator rate and the commercial overdraft base rate (now at 13.55% p.a.), and the agri current account base rate (now at 11.75% p.a.). Business term loans have also been decreased by -0.15%.
Home loan interest rates have almost all been reduced across the board, with interest on floating home loans, flexible home loans, and business flexible facility loans all being reduced by -0.15%. Fixed special rate loans have also been reduced, with the six-month, 18-month, two-year, and three-year rates all down -0.15%.
The new rates will be effective from August 1, 2024.
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