ASB lowers mortgage rates second time in a week

Major bank ASB has dropped some of its home lending rates for the second time in a week.  

ASB made the announcement on Monday morning, with the bank saying this will be welcome news to homeowners battling the cost-of-living crisis.   

The bank slashed its one-year lending rate by 10 basis points from 7.39 percent to 7.29 percent. On top of that, ASB also reduced its two-year lending rate from 6.89 percent to 6.85 percent.    

The major bank has also increased its six-month term deposit rate by five basis points to 6.05 percent.  

The pricing changes came into effect on Monday morning.   

Monday's rate changes come after the bank dropped its 18-month mortgage rate last week by 26 basis points to 6.89 percent.   

"We regularly review our rates, and the reduction to some of our key mortgage terms in part reflects how swap rates have responded to the Reserve Bank's decision to hold the Official Cash Rate at 5.50 percent," ASB's executive general manager personal banking Adam Boyd said.   

"We know that the rising cost of living is affecting our customers, and alleviating a bit of pressure will be welcome news for homeowners in the current environment."  

The move comes just days after the Reserve Bank (RBNZ) held the Official Cash Rate at 5.5 percent - in line with what many economists predicted.  

The RBNZ said the New Zealand economy had evolved broadly and core inflation and most measures of inflation had declined. The bank said the risks to the inflation outlook were now more balanced.