This rate cut doesn't give them an edge over the top home loan lender, ANZ. And being the second-largest lender in NZ, it would have made more sense for them to match the Kiwibank 1-year rate to create some competition for ANZ. New rates from ASB are: 1 year: 3.65%, 2 years: 3.59%
How does this leave the market?
Well, it looks like ANZ and ASB are now the market leader in the two years fixed term space with 3.59% where Kiwibank is also soon to join and have already announced their rate reduction effective from 2nd September. Meanwhile, Kiwibank will still hold the lead in the one-year fixed term space with 3.55%.