OCR Steady As She Goes
The Government’s responsible fiscal management has supported the Reserve Bank to keep the Official Cash Rate low, Finance Minister Nicola Willis says.
The Reserve Bank of New Zealand today announced it would keep the Official Cash Rate (OCR) at 3.25 per cent while continuing to foreshadow further reductions in the OCR.
“There has been a 2.25 percentage point reduction in the Official Cash Rate since August last year – easing the cost of borrowing and delivering much needed cost of living relief for many New Zealand households,” Nicola Willis says.
“While many Kiwis are already experiencing lower mortgage repayments off the back of previous OCR reductions, more will benefit when they re-fix their mortgage this year, meaning the positive effects of previous rate drops will continue to flow-through our economy over the coming months.
“Lower interest rates free-up household budgets for spending elsewhere and they ease the path for those wishing to enter the housing market. They also provide relief to interest-rate sensitive sectors of the economy, including building and construction, with lower interest rates often providing a kick-start for big new projects.
“Despite global uncertainty, the Government is continuing to drive New Zealand’s economic recovery forward. Our careful stewardship of the Government books and our ongoing efforts to reduce costly laws and regulations mean inflation and interest rates can stay lower than would otherwise be the case.
“Gone are the days of reckless economic management fueling the flames of inflation and interest rates – New Zealand now has steady hands at the wheel, and a Government that is determined to keep our economic fundamentals in good order.”
https://www.beehive.govt.nz/release/ocr-steady-she-goes