Weekly rate report: Two years way to go

BNZ kicked the game off announcing at the end of last week that it was dropping its two-year rate to 6.99 per cent - along with a little trumpet blowing ("BNZ...sets a new market benchmark for two-year rates").

Others - mainly banks - followed suit with ANZ, ASB and National going to 6.95 per cent (nothing like undercutting the market leader by 0.04 per cent). Bank Direct went a little further to 6.90 per cent, while HSBC and Sovereign (the biggest non-bank lender) dropped to just 7.15 per cent.

BNZ and HSBC also dropped other fixed rates and Westpac took its hybrid 30-month rate to 7.15 per cent.

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