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ASB cuts fixed mortgage rates, and term deposit rates, signaling a final December push for precious housing sale transactions

The article from interest.co.nz discusses recent changes in New Zealand's financial market, particularly focusing on ASB's adjustments to its fixed mortgage and term deposit rates. ASB has reduced its one-year fixed mortgage rate by 10 basis points to 7.25% and its two-year rate by 6 basis points to 6.85%. These cuts follow a trend where other major banks like ANZ, BNZ, and Westpac have also lowered their rates, signaling a response to the economic environment. Additionally, ASB has decreased its term deposit rates, with the 6-month term deposit rate dropping by 10 basis points to 5.80% and the 9-month rate by 20 basis points to 5.80%. These changes come in the context of a broader market expectation of a potential pause in the Reserve Bank of New Zealand's (RBNZ) Official Cash Rate (OCR) hikes, with ASB suggesting that the OCR might have peaked, although they anticipate one more rate increase in November before a possible pause. This reflects a cautious approach by banks to manage funding costs and lending rates amidst economic uncertainty.

Read the Full Interest Article at:
[ https://www.interest.co.nz/personal-finance/131035/fixed-mortgage-rates-and-term-deposit-rates-have-been-cut-asb-signal-final ]