Is this the start?

Kiwibank first to cut mortgage rates after Bollard slashes OCR
Page 1 of 3 ..... page 10:39AM Thursday Oct 23, 2008
Graphic / Christoph Lukasser

Kiwibank has become the first bank to react to Reserve Bank governor Alan Bollard's cut in the Official Cash Rate (OCR) by making a matching one per cent cut to its variable home loan rate.

Kiwibank chief executive Sam Knowles said the new variable rate would be 8.70 per cent per annum with immediate effect for new customers and in two weeks for existing customers.

"We are also making cuts across the board to our fixed term rates," Mr Knowles said.

Kiwibank cut the premium two-year to below 8 per cent late last month in anticipation of today's OCR reduction and has now passed on an additional small cut for this rate to 7.79 per cent.

The one-year rate has also been cut to 7.99 per cent.

Mr Knowles said the quick cuts were all part of the bank's strategy to be "slow to rise, but fast to fall" with home loan rates.

More here.