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.

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.

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