Overview

• BNZ reduced several fixed terms, setting six-month at 4.89%, 18-month at 4.49%, two-year at 4.65%, and three-year at 4.85%.
• Kiwibank lowered its one-, two-, and three-year fixed rates to 4.49%, 4.69%, and 4.99%, with the one-year matching other major banks.
• The adjustments come days before the Reserve Bank of New Zealand sets the official cash rate this week.
• Kiwibank economists said a more stimulatory OCR is needed to encourage business investment or hiring and to lift households' discretionary spending.
• They projected the OCR would be at least 2.5% by Christmas, highlighting risks toward 2% and uncertainty over the path and timing.