Westpac Banking (ASX:WBC, NZE:WBC) and ANZ Group Holdings (ASX:ANZ, NZE:ANZ) lowered their floating home and business loan rates, following the Reserve Bank of New Zealand's decision to cut the official cash rate cut by 25 basis points (bps) to 3.5%, according to Thursday statements by the banks.

ANZ will cut its floating and flexible home loan rates to 6.69% and 6.8%, respectively. The reduced rates will apply from Friday for new customers and April 16 for existing ones.

Similarly, Westpac will reduce its choices floating and offset home loan rates by 25 bps to 6.74% per annum, effective April 14 for new customers and April 21 for existing ones.

Its Choices Everyday rate will also drop to 6.84% per annum, with most variable business loan rates decreasing by 25 bps, Westpac said.

Westpac Banking's shares were up 5% in New Zealand and 2% in Australia in recent Thursday trade. ANZ Group's Australian and Kiwi shares rose 4% and 3%, respectively.