Bank cuts its home loan rates

 ASB Bank has cut its three, four and five-year fixed home loan rates.

The biggest change is to five-year rates, with a 0.25 point drop from 6.5 per cent to 6.25 per cent.

Three-year rates have been cut from 5.9 per cent to 5.75 per cent, and four-year rates from 6.1 per cent to 5.95 per cent.

"ASB has reduced its three, four and five year fixed interest rates to assist our customers who want more certainty in their home loan repayments over the longer term," ASB spokesman Shaun Drylie said.

"Our special two-year fixed home loan interest rate of 5.25 per cent has come to an end, and the two-year term is now aligned this with the 12- and 18-month fixed home loan interest rate of 5.4 per cent."

Last week, Statistics New Zealand said New Zealand's consumers price index (CPI) fell 0.2 per cent in the December 2012 quarter, which was below expectations.

With the annual inflation rate now at only 0.9 per cent, most economists expect the Reserve Bank will not make cuts to the Official Cash Rate until next year.

 

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