OCR Slashed to 1%

Today the Reserve Bank slashed the Official Cash Rate from 1.50% to 1%. This is the lowest rate in NZ’s history.

Swap rates which largely determine fixed interest rate pricing moved substancially.  The 5 year swap rate declined by 11% to 1.06%.

Variable and fixed interest rates for borrowers should fall as a result depending on how much is passed on to borrowers by the Banks.

OCR Held @ 1.50%

The Reserve Bank held the OCR at 1.50% today but cited “….weaker global economic outlook and the risk of ongoing subdued domestic growth, a lower OCR may be needed over time to continue to meet our objectives.”

OCR Cut to 1.50%

The Reserve Bank has today cut the OCR from 1.75% to 1.50% citing “continuing house price softness in some areas” which means in Auckland.

It seems unlikely that the 4 main Banks will pass on the full 0.25% cut to their floating interest rate borrowers.

PH: 0800 2 FINANCE. Auckland Based Mortgage and Insurance Assistance Since 2002