ASB cuts interest rates

ASB has responded to the RBNZ's OCR announcement today, and is reducing interest rates across personal, business and rural lending by up to 0.25%.

ASB's Executive General Manager Personal Banking Adam Boyd says, "As the easing interest rate cycle continues, we are maintaining support for our customers with lower lending rates. Our variable loans are held by nearly 150,000 New Zealanders across personal, business and rural lending and these rates are the lowest they've been in more than two years."

"We carefully consider the impact rate reductions have for all our customers. Today's response to the OCR will bring relief to households and businesses while acknowledging the needs of our savers by not passing on the full 25 basis point cut to our savings products," says Mr. Boyd.

ASB's Housing Variable Rate will drop 20 basis points from 6.64% to 6.44%, while Orbit Variable will move from 6.74% to 6.54%. ASB's Business Base Rate will drop 25 basis points from 11.77% to 11.52% while its Rural Base Rate will also drop by 0.25% from 9.01% to 8.76%.

In response to the OCR decrease, ASB is lowering some of its savings products, including Savings On Call and Headstart, by 20 basis points.