ASB has reduced its floating home mortgage rate by 0.65%, taking it to 5.75% - the lowest for 40 years.
The bank has lowered its business and rural base rates by 0.3%, taking them down to 10.55% and 7.6% respectively.
The new interest rates come into effect on 5 September for new
loans, and on 28 September for existing floating and base rate loans.
