Kiwibank cuts variable lending rates by 0.50%

Kiwibank is reducing its variable loan rates by 0.50%.

Elliot Smith, Kiwibank’s Chief Customer Officer, Business Banking, said, “Kiwibank was established with the vision of offering New Zealanders a genuine alternative to the major banks. Our decision to cut variable loan rates by 0.50% highlights how New Zealand’s largest locally owned bank continues to rise to the challenge.

“While controlling inflation is essential, prolonged high interest rates have heavily burdened businesses and households. Lowering rates quickly is crucial to provide much needed relief for borrowers, so it is important Kiwibank, and the market, responds.

“Many market commentators, including our Kiwibank Economics team, are calling for a 50-basis point (0.50%) cut to the OCR on Wednesday to support the economy. In keeping with our aspiration to continue to disrupt the banking sector in Aotearoa, Kiwibank is responding early to that call. By taking the initiative we’ve laid the challenge to the ‘Big 4’ – it’s going to be interesting to see if, and when, they respond.”

Kiwibank expects its interest rate reduction to result in total interest savings of $18 million per year for more than 35,000 Kiwibank business banking and home loan customers.

Further analysis:

• Kiwi Economics: The RBNZ is in focus this week. The Kiwi economy requires rate relief, quick.

Business lending

Variable business lending rates will decrease by 0.50%. Customers will be notified ahead of their rate changing.