Kiwibank, ASB and Westpac drop rates

Competition has begun between banks to to see who can offer the lowest interest rates, following todays drop in the official cash rate by 1.5 percent.

ASB was first off the block, reducing its variable rate by 0.75 percent to 7.95 percent.

Kiwibank has followed by dropping both its one year fixed rate and variable rate. Chief executive Sam Knowles says the one year rate is down to 6.49 percent and variable rate has dropped to 7.45 percent. He says both are cuts of 0.5 percent, which follow on from rates cuts late last month.

Westpac has since cuts its rates by between 0.25 percent and 0.55 percent.

source: Newstalk ZB