ASB announces interest rate reductions

ASB, yesterday, announced it will be dropping its home loan fixed interest rates by up to 0.5 of a percentage point.

The new Housing interest rates will be effective as from tomorrow, 2 March 2011. For a fixed term of 6 months the new rate is 5.85 percent per annum, with the new 12 months Housing fixed rate being 5.95 percent per annum. There will also be reductions to all other home loan fixed rates.

The ASB decision to reduce fixed lending rates reflects changing wholesale funding rates and market forecasts that the Reserve Bank of New Zealand is likely to lower the Official Cash Rate next week. With wholesale call and 90 day rates reflecting little change at present we will continue to monitor our variable home loan interest rate leading up to the OCR announcement next week.

ASB’s Term Deposit rates have also been reduced to reflect the changes in wholesale rates. The new Term Deposit and Term Fund interest rates are also effective as from 2 March.

The full list of interest rate changes is attached. For more information about ASB’s interest rates please visit the ASB website.