The Reserve Bank of New Zealand has cut the official cash rate (OCR) by 50 basis points to 4.75 percent, the lowest in 18 months, in response to slowing inflation and economic slack.
The Reserve Bank’s Monetary Policy Committee (MPC) emphasized the need to maintain low and stable inflation while avoiding unnecessary instability in the economy.
Retail banks quickly reacted to the move, with ASB, BNZ, Westpac, and Kiwibank all reducing their home loan rates. ASB alone expects 120,000 customers to benefit from lower variable mortgage rates, while also passing cuts on to savings rates.
Economists have noted that the Reserve Bank’s decision signals a shift towards a more neutral or even stimulatory monetary policy.
Corelogic’s chief economist Kelvin Davidson told media he believes falling mortgage rates could stabilize the housing market and improve confidence, while ASB’s Nick Tuffley expects a further 50 basis point cut by the end of the year, though this will depend on upcoming economic data. The overall outlook suggests continued relief for homeowners, though savings customers may experience decreasing returns as rates continue to fall.
Shock and Orr
Flip flop
Should be flipping burgers at MacDonald’s
Left interest rates too high for too long
And consequently f*cked the economy
Rubbing salt into the wound let by NEW Labour
And the Ardern wrecking ball
Thank god the Navy is in good shape?🙃
And not sitting wrecked on a reef someplace we had no need to be 🫠🙃😀🤙
And why do these ship Commanders carry pieces of driftwood around with them
Politically correct?
The World of Beachcomber?