ASB is reducing some of its fixed home loan interest rates by up to 0.20%.

The new rates are effective from tomorrow, Friday 27 January. They include a 0.10% reduction in the 12 month rate to 5.70% per annum; a 0.15% reduction in the 2 year rate to 5.85% per annum; and a 0.20% percent reduction to 3 year, 4 year and 5 year rates to 6.10%, 6.50% and 6.90% per annum respectively.

"Given the interest rate outlook following the RBNZ rate announcement, we think it is important that customers have competitive options to consider between floating and fixed rates," says ASB General Manager Lending, Mike Davy. "ASB is offering competitive fixed rates in all terms, including the most competitive 18 month and 3 year rates among the major banks."