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.