fixed rates

PHOTO: SCOTT BARBOUR/GETTY IMAGES ANZ’s new rates take effect March 19.

ANZ has become the first bank to cut its fixed home loan rates after the Reserve Bank’s emergency official cash rate cut this week.

The official cash rate was slashed from 1 per cent to 0.25 per cent on Monday.

Banks applied the reduction to floating rates immediately, but did not move on fixed rates.

ANZ said on Wednesday it would cut its one-year fixed rate special by 40 basis points to 3.05 per cent.

Its two-year fixed rate special would cut by 30 basis points to 3.35 per cent.

The rates take effect from March 19.

Term deposit rates have been cut by 0.25 per cent.

“These new rates will provide some relief and support for customers during a difficult and uncertain time,” said Ben Kelleher, managing director retail and business banking for ANZ in New Zealand.