27 August 2025

OCR Pass Through Transparency

Delivering transparency on the pace at which financial institutions respond to changes in the Official Cash Rate

The Reserve Bank of New Zealand (RBNZ) sets the official cash rate (OCR) to achieve and maintain price stability (inflation). Banks and other financial institutions like credit unions, building societies and some finance companies use the level of the OCR as one of the factors when they determine interest rates offered to their customers.

When the RBNZ changes the OCR the financial institutions may make changes to their interest rates, but that can take time depending on the institution. The table below shows the size of interest rate changes and the time taken for the change to take effect for new and existing customers of floating rate mortgages and on call savings accounts.

The FMA has requested information from eight financial institutions¹ that provide ~98% of housing loans in New Zealand². These financial institutions already provide information about the interest rates applicable to their products, and when they are moved, through a variety of channels.

We are publishing this information to:

Improve transparency of the pace at which banks pass through changes to the RBNZ’s Official Cash Rate (OCR) for new and existing customers.
Provide consumers a centralised source of information to view the interest rates of the financial institutions participating.
Illustrate the changes made to interest rates on two key products affected by moves in the OCR and, importantly, when those changes come into effect for new and existing customers.
To assist consumers in making informed decisions.

Interest rates table

The table shows interest rates for floating rate mortgages and on call savings accounts supplied by the eight financial institutions¹ based on standard consumer profiles³.

The interest rates, pre and post the RBNZ OCR announcements, and the dates on which those changes are effective for new and existing customers, have been voluntarily supplied to the FMA and are current at the time of cut off for publishing.

The change in the interest rates and the days since the RBNZ OCR review are calculated fields based on information supplied and relative to the RBNZ OCR review announcement date.

“Information not submitted” means a Financial Institution has not met the publishing deadline requirements or chosen not to submit information.
“No product available” means a Financial Institution does not have a product that matches the consumer profile.

This information is updated seven days after each RBNZ OCR review and is correct at the date of publication, 27 August 2025.

Changes to interest rates after the RBNZ OCR announcement on
20-Aug-25

Entity	Product	Pre OCR review interest rate	Post OCR review interest rate	Change %	Effective date – New customers	Days since RBNZ OCR review	Effective date – Existing customers	Days since RBNZ OCR review
Floating rate Mortgage
ANZ Bank New Zealand Limited	Floating rate home loan	6.49%	6.29%	-0.20%	22-Aug-25	2	26-Aug-25	6
ASB Bank Limited	Housing Variable	6.44%	6.29%	-0.15%	22-Aug-25	2	27-Aug-25	7
Bank of New Zealand	Standard Variable	6.44%	6.29%	-0.15%	27-Aug-25	7	27-Aug-25	7
Kiwibank Limited	Variable	6.35%	6.15%	-0.20%	25-Aug-25	5	8-Sep-25	19
Southland Building Society	Residential	6.49%	6.29%	-0.20%	22-Aug-25	2	22-Sep-25	33
The Co-operative Bank Limited	Floating	5.95%	5.70%	-0.25%	22-Aug-25	2	5-Sep-25	16
TSB Bank Limited	Liberty Table	6.39%	6.24%	-0.15%	26-Aug-25	6	2-Sep-25	13
Westpac New Zealand Limited	Choices Floating	6.59%	6.39%	-0.20%	25-Aug-25	5	28-Aug-25	8

Standard Consumer Profile: Floating Rate Mortgage

Consumer is borrowing all, or part, of their requirements where their total borrowings are equal to or less than 80% of the loan to valuation of asset used as security on a floating rate basis. They may be paying interest only or principal and interest for repayment of the floating rate mortgage.

Entity	Product	Pre OCR review interest rate	Post OCR review interest rate	Change %	Effective date – New customers	Days since RBNZ OCR review	Effective date – Existing customers	Days since RBNZ OCR review
On Call Savings account
ANZ Bank New Zealand Limited	ANZ Online account	0.70%	0.60%	-0.10%	26-Aug-25	6	26-Aug-25	6
ASB Bank Limited	Savings on Call	0.70%	0.45%	-0.25%	27-Aug-25	7	27-Aug-25	7
Bank of New Zealand	No product available	—	—	—	—	—	—	—
Kiwibank Limited	Online Call	2.25%	2.00%	-0.25%	25-Aug-25	5	25-Aug-25	5
Southland Building Society	iSave	0.40%	0.40%	0.00%	—	—	—	—
The Co-operative Bank Limited	Online Account	1.35%	1.20%	-0.15%	22-Aug-25	2	22-Aug-25	2
TSB Bank Limited	WebSaver	1.95%	1.70%	-0.25%	2-Sep-25	13	2-Sep-25	13
Westpac New Zealand Limited	Simple Saver	0.55%	0.30%	-0.25%	25-Aug-25	5	25-Aug-25	5

Standard Consumer Profile: On Call Savings Account

Consumer has a savings account where interest is paid on call and funds can be withdrawn electronically at any time with no impact on the advertised interest rate or any fees charged. The consumer's on call savings account balance at the end of the interest payment period (month) may be lower than the prior interest payment period (month).

Publishing data on savings and lending product interest rate changes

FMA's statutory duty is to promote and facilitate the development of fair, efficient, and transparent financial markets; and to promote the confident and informed participation of businesses, investors, and consumers in the financial markets.

The FMA’s Financial Conduct Report (FCR) outlines our intention to publish data on savings and lending product interest rate changes.

Banking is essential to the financial wellbeing of New Zealanders. Mortgages often make up a significant proportion of household costs for many New Zealanders and savings accounts are amongst the most commonly held type of account.

¹ Financial Institutions - ANZ, ASB, BNZ, Co-Operative Bank, Kiwibank, SBS Bank, TSB Bank, Westpac.

² As measured in the RBNZ Bank Financial Strength Dashboard as at 31 March 2025 https://bankdashboard.rbnz.govt.nz/asset-quality

³ We provided standard consumer profiles to the eight financial institutions. They selected their products that aligned to the standard consumer profile. In the savings account area in particular there are multiple different characteristics of savers and products which can change over time. Providing products to match one standard consumer profile may not always be possible, but using a standard consumer profile allows for fair, transparent and meaningful comparisons across different financial institutions and financial products. It helps consumers make informed decisions. Banks have provided information for two products based on standard consumer profiles. Banks may have other products available that better suit customer needs depending on individual circumstances.