Westpac and Kiwibank have followed ANZ's lead and also cut rates after the Reserve Bank lowered the official cash rate by 0.25% to 2% today.
ANZ was the first to move after the Reserve Bank's announcement, dropping its floating and flexible home loan rates and also hiking rates
for some term deposits.
Westpac has since announced it will reduce its floating mortgage rates and is introducing a new six month term deposit special.
The new floating mortgage rate has been reduced by 10 basis points to 5.65% and applies to Choices Floating, Choices Everyday and Choices Offset, effective for new lending from Friday 12 August and from 31 August for existing customers.
The special six month term deposit rate will be 3.50%, up 50 basis points on the current six month term deposit rate, effective Friday 12 August.
Kiwibank has also made cuts, dropping all its variable rates by between 0.20% and 0.25%, effective Monday 15 August for new customers and Monday 29 August for existing customers.
Its Home Loan Variable rate will fall by 0.20% to 5.25%; the Offset rate will reduce by 0.25% to 5.25% and the Revolving Home Loan rate by 0.20% to 5.30%.
The bank said the changes were made to support customers looking for flexibility with their lending and are the lowest variable rates Kiwibank has offered since it launched in 2002.