OCR Drops by 0.5% - Word is there is more to come...

The Reserve Bank, as expected, cut the official cash rate again Today. However, it was the level at which they cut that has taken a few by surprise.

The rate was cut by 0.5% (most people in the industry that I had spoken to had expected a 0.25% cut so this is substantially more than that which was generally expected).

Only yesterday, a key representative of one of the main banks had indicated that they were expecting 3 rate reductions before the end of the year - and 0.25% each time was around the level of cut expected each time. So, the first one being at 0.5% makes a statement..

One thing is for certain. No-one seems to be predicting a short-term upward swing. General consensus is that rates could continue on the downward trajectory which is fantastic news for borrowers.

Time for a review of your lending?

Get in touch and make a plan to take advantage of this time.

Paul - 021 615907 or paul@majesty.co.nz