Two major banks have cut interest rates in the past 24 hours

ASB has slashed up to 20 basis points on a range of fixed home loan rates today -- its seventh cut this year.

ANZ made similar moves yesterday.

The Reserve Bank says it expects more people to move from floating and six-month interest rates, back to fixing on one and two-year terms.

ASB economist Mark Smith says with the OCR back to neutral levels, a higher bar will be needed to justify another cut next month.