14 Jan 2009

ANZ, National cut fixed-mortgage rates

2:42 pm on 14 January 2009

ANZ and National banks have cut their fixed-rate mortgage rates as the outlook for the economy continues to worsen.

The banks cut rates by between 0.2 and 0.89 of a percentage point on Wednesday for their two, three, four and five-year mortgages.

Fixed-term rates were cut by ASB and Westpac last month.

ANZ National chief economist Cameron Bagrie says the outlook for the economy continued to worsen over Christmas.

Mr Bagrie says this will increase pressure on the Reserve Bank of New Zealand to cut the Official Cash Rate by a full percentage point at its next review on 29 January.

Bank of New Zealand - which still has the highest three and five-year fixed rates of the main trading banks - say it is reviewing its mortgage rates.