The Co-operative Bank continues to lead the market with floating rate cut

The Co-operative Bank continues to lead the market with floating rate cut

The Co-operative Bank has responded to today’s 0.50% Official Cash Rate cut by dropping its floating interest rate to 6.45% – passing on the full OCR cut to customers on floating terms and offering the lowest floating rate.

The Co-operative has been offering a NZ market leading floating rate since the previous OCR cut at the end of November last year.

 

Chief Executive Mark Wilkshire says, “The Co-operative Bank has continued to see increased numbers of customers opting for flexibility in the declining rate environment in recent months, and the latest cuts by The Co-operative reflect the importance of offering customers more options. Customers can opt for floating rates while they decide when to fix or, for some customers, having some or all of their mortgage on floating gives them flexibility.”

“The market has already priced in most of the anticipated OCR reductions for fixed rate mortgages. However, based on current Reserve Bank forecasts we could see further OCR reductions and if so we would expect to see floating rates fall further”.

The Co-operative Bank is also cutting some deposit rates effective from Friday, 21 February, however, it has chosen not to pass on the full 0.50% OCR cut for savings customers.

Mark Wilkshire says this recognises the importance of saving and the Co-operative’s commitment to be fair and competitive.

“As a customer-owned co-operative, we want to offer the best value we possibly can to both our borrowers and our savers,” Mark Wilkshire says.