Kiwibank has announced a reduction in its fixed home loan rates, aligning with recent decreases in wholesale rates. The bank now offers a competitive one-year fixed rate of 6.29%, which matches ANZ's rates for most durations. The reductions range from 4 to 20 basis points, reflecting a broader trend of easing inflation and central banks' moves to lower benchmark rates. Additionally, Kiwibank has also cut deposit rates by 10 to 30 basis points. Analysts are predicting that the US Federal Reserve may soon begin its rate-cutting cycle, which could influence the Reserve Bank of New Zealand's decisions. Predictions suggest that the Official Cash Rate in New Zealand could be reduced by 87 basis points to 4.35% by the end of the year. However, ASB senior economist Kim Mundy has expressed skepticism regarding the prevailing optimism surrounding these potential rate cuts. [7dda908d]