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Westpac New Zealand Makes Bold Cut To Interest Rates

Fuseworks Media
Fuseworks Media
Westpac New Zealand Makes Bold Cut To Interest Rates

20 November 2008 - Westpac New Zealand has today announced a significant reduction in interest rates across a broad range of its lending products.

A reduction of 0.75% will be applied to: floating home loan rates, most fixed home loan rates, base business banking and agri lending rates, and credit card interest rates.

Acting CEO Bruce McLachlan says that the decision to make such a bold reduction in lending rates follows a significant easing in wholesale rates over the past week.

"We are pleased to be able to pass on to consumer, business and farming clients the benefits of an easing in wholesale rates, and we want to send a strong signal, by doing this, that we are open for doing good and fair business with our customers who are facing a tough economic environment," Mr McLachlan said.

"Westpac New Zealand genuinely believes it has an obligation to its customers, and to the wider economy, to pass on relief in the form of interest rates reductions when it is able."

The cut to lending rates have also been made in anticipation of a widely-predicted Reserve Bank cut to the official cash rate in early December - this cut is already being priced into the wholesale rates.

"Westpac has decided not to wait until 4 December to pass on this benefit to our customers," Mr McLachlan said.

"We're all aware of the financial pressure that many people are experiencing in the current economic climate; in some cases, this pressure is significant. We are committed to supporting our customers as much as possible during this time, and today's announcement will be great news for many of them."

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