The biggest breaking news today is the announcement of the new one year, two years and three years offer of 3.19% from the China Construction Bank.
CCB is not known as the most competitive when it comes to rates, and position themselves more of a second option for borrowers. Their latest rate drop, however, now makes them the market leader in the one, two and three-year space.
I have to say that we did not see this coming. With the wholesale rate rising, we did not expect CCB to drop their market-leading rate.
CCB and HSBC now have the two lowest rates in the market. Even though they do operate differently from the NZ and Australian owned banks, it will be interesting to see if the others would respond with a drop of their own.