SBS,ASB cuts rate

Invercargill-based SBS Bank was the first bank to announce a mortgage rate reduction in reaction to the Reserve Bank's cash rate cut today.

The Reserve Bank cut the Official Cash Rate by 1.5 basis points to 5 percent.

SBS, the former Southland Building Society, dropped its floating rate mortgage 195 basis points to 7.20 percent - a four-year low.

ASB announced a drop in its variable term home lending rates by 0.75 percentage point, saying its total reduction was 1.5 points as it had already cut 0.75 off in anticipation of the Reserve Bank's actions.

source : nzpa