OCR

2024 - 10 - 8

A Cut Above the Rest: Reserve Bank Slashes OCR and Homeowners Rejoice!

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Break out the confetti, New Zealand! The Reserve Bank just cut the OCR to 4.75%, and it’s time for mortgage rates to follow suit!

In a dramatic move today, the Reserve Bank of New Zealand has announced a 50 basis point cut to the Official Cash Rate (OCR), bringing it down to 4.75%. This significant reduction is intended to bolster economic activity amidst signs of economic slowdown in the region. The Monetary Policy Committee, while optimistic about curtailing inflation, is hoping that this rate cut will stimulate spending and investment across various sectors. As the dust settles from this surprise announcement, everyone's wondering—what's next for home loans and savings?

With the OCR slashed, retail banks are expected to respond in kind, leading to lowered mortgage rates and shrinking returns on savings. This rally cry for better mortgage conditions means homeowners across New Zealand might finally get some relief as they seek to manage their ever-growing mortgage repayments. One bank has already jumped at the opportunity, with BNZ announcing a 0.50% cut to its variable home loan rates following the Reserve Bank's decision. It’s a win-win for mortgaged Kiwis who could see some extra cash flow returning to their pockets!

Interestingly, there’s been buzz in the economic community about potentially deeper cuts. While the general consensus has favored the 50 basis point reduction, some economists believe the Reserve Bank could go further, possibly considering a 75 basis point cut if economic conditions worsen. It’s a delicate balancing act for the RBNZ as they manually adjust the dials of monetary policy based on economic data and inflation metrics. Sounds like the Reserve Bank is playing a high-stakes game of economic chess!

As homeowners rejoice, it’s also important to remember the flip side. With lower mortgage rates come reduced interest returns on savings, which may discourage saving and investment in the long run. Fun fact: did you know that the OCR hasn’t been this low since before the pandemic hit? It's a significant marker in New Zealand's financial forecast and a real sign that the Reserve Bank is keen on propelling the economy forward, even if it risks certain short-term consequences! Additionally, historical data shows that cuts to the OCR lead to a boost in consumer spending—often resulting in a principle known as the 'wealth effect'. So, let’s keep an eye out for how this affects your wallet in the upcoming months!

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Image courtesy of "New Zealand Herald"

Official cash rate decision live updates: Reserve Bank cuts rates by ... (New Zealand Herald)

The Reserve Bank has today cut the official cash rate (OCR) by 50 basis points to 4.75%. The Monetary Policy Committee said economic activity in New Zealand ...

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Image courtesy of "Stuff.co.nz"

Could the Reserve Bank slash the OCR by 75 basis points? (Stuff.co.nz)

Economists have reached a consensus on a 50-basis point cut, but one fund manger is asking why stop there?

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Image courtesy of "1 News"

Reserve Bank cuts OCR by 0.5%, mortgage rate falls likely to follow (1 News)

The cut, which is likely to lead retail banks to lower their mortgage rates and interest return on savings, brings the OCR to 4.75%.

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Image courtesy of "Newstalk ZB"

50 basis points? 25? How much will the OCR be cut by? (Newstalk ZB)

Markets are predicting a 50 basis point cut to the OCR, but Economist Michael Reddell says the Reserve Bank may opt for another option such as a 25 point c.

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Image courtesy of "Interest.co.nz"

RBNZ slashes OCR to 4.75% (Interest.co.nz)

The Reserve Bank delivers double whammy rate cut as economy weakens.

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Image courtesy of "Otago Daily Times"

Reserve Bank cuts OCR to 4.75% (Otago Daily Times)

It said the speed and size of future rate cuts would be determined by economic data. Retail banks have been quick to cut lending rates in anticipation of the ...

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Image courtesy of "goodreturns.co.nz"

BREAKING: OCR 4.75% – Monetary restraint reduced as inflation ... (goodreturns.co.nz)

The Committee assesses that annual consumer price inflation is within its 1 to 3 percent inflation target range and converging on the 2 percent midpoint.

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Image courtesy of "Stuff.co.nz"

What an OCR cut will mean for mortgages (Stuff.co.nz)

Economists are calling for the Official Cash Rate to drop this week - so what will that mean for your mortgage? The Reserve Bank of NZ (RBNZ) will be ...

BNZ cuts variable home loan rates by 0.50% following drop in OCR ... (BNZ Debrief -)

BNZ General Manager Home Lending Products James Leydon says today's decision by the Reserve Bank to cut to the official cash rate and BNZ's subsequent interest ...

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Image courtesy of "1 News"

Major bank cuts rates again ahead of OCR decision (1 News)

Economists are confident the OCR will be cut this afternoon, but by exactly how much remains unknown. The Reserve Bank was set to reveal the new rate at ...

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Image courtesy of "New Zealand Herald"

ASB makes mortgage rate cut after Kiwibank cuts lending rate ... (New Zealand Herald)

ASB today announced cuts to its fixed mortgage and term deposit rates. The bank made the cuts ahead of the Reserve Bank's Official Cash Rate announcement,.

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Image courtesy of "New Zealand Herald"

Relief for homeowners: Banks cut mortgage rates in response to ... (New Zealand Herald)

Relief is in sight for homeowners after the Reserve Bank delivered a double cut to the official cash rate (OCR) today . The OCR was cut 50 basis points ...

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Image courtesy of "OneRoof"

Super-size cut sees the OCR drop to 4.75% (OneRoof)

Reserve Bank says inflation is heading in the right direction., All things property, under OneRoof.

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Image courtesy of "RNZ"

Reserve Bank cuts Official Cash Rate to 4.75% (RNZ)

The 50 basis-point cut means the OCR is now at its lowest level since March 2023.

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Image courtesy of "New Zealand Herald"

Official Cash Rate decision: Retailers say OCR cut right in time for ... (New Zealand Herald)

Retailers have shared their excitement for the “early Christmas present” delivered by the Reserve Bank . The decision to cut the Official Cash Rate (OCR) by ...

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Image courtesy of "1 News"

OCR cut reaction: 'Brighter days ahead' as rate relief coming (1 News)

A dovish call by the Reserve Bank to cut the official cash rate by 50 basis points has been welcomed as a "relief". The central bank said it made its ...

ASB Lowers Rates Following OCR Decrease (Scoop.co.nz)

ASB's variable home loan rate will fall by 50 basis points from 8.39% to 7.89%, while the Orbit rate drops from 8.49% to 7.99%. ASB's Business and Rural ...

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Image courtesy of "RNZ"

Reserve Bank gives in to pressure with massive OCR cut (RNZ)

Analysis - The Reserve Bank could not hold off from growing outside chatter as it dropped the OCR to an 18-month low today, Gyle Beckford writes.

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Image courtesy of "goodreturns.co.nz"

Banks slash floating rates after 50bp OCR cut - Good Returns (goodreturns.co.nz)

The Reserve Bank cut its official cash rate (OCR) by 50 basis points to 4.75%, as expected, and said it assesses that inflation is now within its 1% to 3% ...

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Image courtesy of "1 News"

Reserve Bank cuts OCR by 0.5%, mortgage rate falls follow (1 News)

The big four banks - ASB, ANZ and BNZ and Westpac - quickly cut their variable rates by 50 basis points, following Kiwibank which went early and lopped 0.50% ...

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Image courtesy of "- NZCTU"

OCR decision a welcome relief for working people - NZCTU (- NZCTU)

NZCTU Te Kauae Kaimahi Economist Craig Renney said the decision by the Reserve Bank to cut the official cash rate by 50 basis points (0.5%) to 4.75% will be ...

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Image courtesy of "New Zealand Herald"

NZ sharemarket surges on OCR cut, property stocks enjoy revival ... (New Zealand Herald)

The New Zealand sharemarket surged 1.75% after the Reserve Bank cut the official cash rate (OCR) 50 basis points – with relieved property stocks enjoying a.

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Image courtesy of "Stuff.co.nz"

Banks start cutting mortgage rates following OCR drop (Stuff.co.nz)

Banks have already begun cutting interest rates following the Official Cash Rate dropping to 4.75%.

NZ sharemarket favours OCR cut, up 1.75% - Good Returns (goodreturns.co.nz)

The New Zealand sharemarket surged 1.75% after the Reserve Bank of NZ cut the official cash rate 50 basis points – with relieved property stocks ...

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Image courtesy of "New Zealand Herald"

OCR cut: What falling interest rates mean for Kiwi travellers (New Zealand Herald)

Falling interest rates will help those with mortgages free up cash for holidays, one of the country's biggest travel agents says. Flight Centre NZ managing.

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Image courtesy of "Stuff.co.nz"

The OCR has dropped to 4.75%, here's what experts think (Stuff.co.nz)

The Reserve Bank's Monetary Policy Committee agreed that it was appropriate to cut the OCR by 50 basis points to “achieve and maintain low and stable inflation, ...

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