ASB is reducing some of its fixed home loan interest rates by up to 45 basis points.

The new rates are effective from tomorrow, Tuesday 15 May. They include a 45 bps reduction in the 12 month rate to 5.25% per annum; a 30 bps reduction in the 2 year rate to 5.55% per annum; and a 35 bps percent reduction to the 3 year rate to 5.75%.

"Changes in market conditions have meant that the cost to ASB of funding some of our fixed home loans has reduced, so we are directly passing on these savings to our customers," said ASB General Manager Products, Retail and Business Banking Strategy, Shaun Drylie.