The banks wasted no time cutting their floating rates yesterday, after the Reserve Bank lowered the official cash rate (OCR) by 0.25 percent to 2.75 percent.
The Reserve Bank said that a further cut to the OCR "seems likely”, but it will depend on future economic data. The economy is expected to grow at around 2 percent, compared with predictions of 3 percent earlier this year.
Within two minutes of the 9am announcement the first bank had announced that it was lowering its variable and floating mortgage interest rates.
But a lower OCR also means lower term deposit rates, and that's not something that will be welcomed by people who are trying to save.
Watch the video for the full report.