Nationwide and BNZ Cut Mortgage Rates as Inflation Pressures Ease

Nationwide Building Society in the United Kingdom announced a fresh round of mortgage‑rate reductions, cutting fixed‑rate products by up to 0.25 percentage points across two‑, three‑, five‑ and ten‑year terms. The society’s lowest fixed rate now stands at 4.19 %, and first‑time‑buyer deals include a £500 cashback incentive.

In New Zealand, BNZ raised short‑term mortgage rates while lowering longer‑term offers, reflecting shifts in wholesale funding costs ahead of the Reserve Bank of New Zealand’s (RBNZ) policy review on 8 July. The RBNZ’s outlook suggests the Official Cash Rate will stay at 2.25 % for the upcoming meeting, with further tightening expected only later in the year as inflation peaks around 4 %.

Both markets are responding to easing inflation expectations and improving global commodity prices, notably the recent decline in oil prices after the Iran‑US talks. The rate cuts aim to support borrowers amid a backdrop of modest economic growth and uncertain geopolitical conditions.