ASB announces further interest rate reductions

ASB has today announced decreases to its variable lending and on call savings account interest rates.

Catherine McGrath, Chief Executive Customers, Markets and Products says the decision to reduce the variable lending rate to 5.75 percent per annum was made following this morning’s decrease in the Official Cash Rate (OCR), which also takes into consideration the broader effects of the Christchurch earthquake. The new variable interest rate for home loans will be effective as from 11 March for new borrowers and from 4 April 2011 for existing borrowers.

“The terrible tragedy in Christchurch will have far reaching consequences, not only for our customers in that region, but for the whole community and the wider economy,” she says.

“While the OCR is just one factor that we consider when setting our interest rates, we hope that by dropping our variable lending rates now we can assist the Reserve Bank to alleviate the new financial pressures now confronting so many New Zealanders.”

Last week ASB lowered its fixed home lending rates and also its term deposit and term fund interest rates to reflect changes in wholesale funding rates.

Variable interest rates for overdrafts, business lending, rural lending and credit cards will also change.

A full table detailing today’s interest rate changes is attached.