OCR on hold for longer….

The Reserve Bank has today kept the OCR @ 1.75%.

Of interest was the lengthening of the period that it could remain at this low level. “”We expect to keep the OCR at this level through 2019 and into 2020″”

Swap rates, the drivers of fixed interest rates, have declined today as a result.

FED and RBNZ Leave Rates on Hold

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.0 percent.  The Fed Funds rate in the USA was also left unchanged.

Our Governor indicated that on current projections the Cash Rate will need to fall further to ensure inflation gets up to the middle of the target range.

ANZ passes on 0.05 of 0.25% cut in the OCR

The ANZ, NZ’s largest Bank, has passed on to its floating rate borrowers a measly 0.05 of the 0.25% cut in the OCR this morning.

After announcing the cut Reserve Bank Governor Graeme Wheeler commented: “We would like to see most of (the OCR cut) passed on.”

In the OCR announcement there is a bias toward a further cut.

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