Bank base rates
A bank quotes a business loan as a base rate plus a margin. The base is the bank's own administered rate, not a market one: it follows the Official Cash Rate and the BKBM bank bills, but at a distance and on the bank's timing. This page puts each bank's published base rates, and the Reserve Bank's monthly averages across all banks, on one chart with the OCR and the bills, from March 2026 when our daily reads of the banks' rates began, so the gap between them can be read directly.
As at 2026-11-01, the major New Zealand banks' published floating base rates for business term lending sit around 4.64%, about 1.48% over the 90-day BKBM bank bill at 3.16%. A borrower pays the base rate plus a margin.
See also: Swap ratesRate historyForward BKBMBond spreadsIssue marginsBKBMNZ corporate bonds
As at 2026-11-01 · bank rates read daily, Reserve Bank averages monthly
| Rate | Latest | Over 90-day BKBM |
|---|---|---|
| Official Cash Rate | 2.75% | -0.41% |
| 90-day BKBM | 3.16% | — |
| ANZ business term loan base | 4.62% | +1.46% |
| ASB business floating base | 4.64% | +1.48% |
| BNZ ProjectPlus base | 4.73% | +1.57% |
| Average rate paid on all business loans (RBNZ) | 5.21% | +2.15% |
| Average new SME overdraft rate (RBNZ) | 10.12% | +6.89% |
It is the floating rate a bank publishes for business lending, set by the bank itself. A business loan is priced as that base plus a margin for the borrower's own risk. It is not the OCR and it is not BKBM: it sits above both, because it carries the bank's own cost of raising money.
The major banks' term-lending bases have sat roughly 1.25% to 1.70% over the 90-day bank bill since March 2026, the gap narrowing as the bill rose faster than the banks moved their bases. Overdraft and working-capital bases sit far higher, mostly between 11 and 14 per cent. The table under the chart shows each rate's gap to the bill on the day.
A margin quoted over a bank's base rate is not the same as a margin over BKBM. To compare two offers, put them on one base: a margin over a bank base rate is worth that margin plus the base's own gap to the bill.
Market data: Swap ratesRate historyBank base ratesForward BKBMBond spreadsIssue marginsBKBMNZ corporate bonds
Indicative market data for benchmarking — not financial advice, a credit rating, or an offer of finance. See the Terms.
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