Westpac NZ Moves Swiftly To Pass On OCR Cut

Westpac NZ is moving swiftly to pass on today’s official cash rate cut in full to variable lending and savings customers.

Effective Monday 14 April for new customers and Monday 21 April for existing customers, Westpac’s Choices Floating and Choices Offset home loan rates will drop by 0.25% to 6.74% p.a., and its Choices Everyday advertised revolving rate will drop by 0.25% to 6.84% p.a.

Most variable business loan rates will also reduce by 0.25% p.a.

Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says the bank is working hard to deliver good value while balancing the needs of borrowers and savers.

“By swiftly passing on today’s OCR cut in full to retail borrowers on variable interest rates, we’re helping put more money in households’ back pockets and encouraging businesses to grow as the economy picks up,” Ms Hearn says.

“We’ve now cut some variable business lending rates by 2.10% p.a. over the current OCR easing cycle – more than the 2.00% that the OCR has fallen by.

“At the same time, we know savers are watching falling rates closely. We’ve supported them by holding back some of the previous OCR reductions on key savings products in the current cycle, and we encourage savers to talk to us if they’re unsure what falling rates might mean for them.”

Ms Hearn says that despite global trade and geopolitical uncertainty, there are positive signs for New Zealand’s economic outlook.

“Lower interest rates should give consumers and businesses a confidence boost after several years of higher costs and interest rates,” Ms Hearn says.

“We’re working hard to support the expected economic recovery over the second half of this year, which means offering not just competitive prices but also great products and services.”

Ms Hearn confirmed Westpac is also lowering its mortgage serviceability rate from 7.25% to 7.00%.

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