Wellington, Jan 29 NZPA - Kiwibank and Westpac have both cut their mortgage rates following the Reserve Bank cut in the official cash rate (OCR) this morning.

Locally-owned banker Kiwibank quickly announced its one-year fixed term rate down from 5.99 percent to 5.69 percent.

Nearly as quick was Westpac, which said its floating rate would reduce from 7.49 percent to 6.89 percent and its one year rate from 6.8 percent to 5.79 percent.

The Reserve Bank today cut the OCR from 5 percent to a record low 3.5 percent.

The OCR -- which influences the price of borrowing money in New Zealand -- is at its lowest level since it was introduced at 4.5 percent in 1999.