MEDIA RELEASE

29 January 2009

SBS Bank reacts swiftly to OCR reduction

New Zealand’s newest bank SBS Bank has responded swiftly to today’s cut in the Official Cash Rate (OCR) by announcing a substantial drop in its floating home loan rate.

This decrease brings SBS Bank’s floating mortgage rate to just 6.45 percent, which is the lowest rate offered by the Society since the OCR was introduced in March 1999.

SBS Bank chief executive Ross Smith said “we are keen to move swiftly so we can pass on the benefits to our customers as soon as practicable.”

“SBS Bank has led the way in passing on OCR cuts to its customers in the past and will continue to do so in these difficult times. We want to play our part in these times of economic recession.

“SBS Bank is able to pass on significant rate reductions because we are not affected by the increased cost of borrowing offshore - a result of the global credit crunch. As a registered bank owned by our customers, we have and will continue to maintain that they are our primary focus.”

Mr Smith said SBS Bank’s fixed rates were currently under review.

ENDS

© Scoop Media