Some good news on the economy – the Reserve Bank has reduced the Official Cash Rate by 25 basis points. That means the OCR is now down to 3.5 per cent – a full two percentage points lower than it was in August last year.
What does that mean for you? Lower interest rates, lower mortgage repayments, and more money in your pocket to help with the cost of living.
For someone with a $500,000 mortgage over 25 years, a two-percentage point drop in their interest rate reduces their repayments by about $300 a fortnight.
That’s real relief for hardworking families.
This is happening because our Government has brought discipline back to public spending. By reining in wasteful spending and taking the pressure off inflation, we’ve given the Reserve Bank room to ease interest rates, and Kiwis are now seeing the benefits.
Inflation has fallen from 7.3 per cent in June 2022 to just 2.2 per cent today – well within the target range.
That’s the payoff of good economic management:
- Lower mortgage rates
- More money flowing through businesses
- A stable, investment-friendly economy that works for New Zealanders
There are still challenges ahead, but we’re putting a premium on stability and making sure every dollar of public money is well spent.
We’re seeing the results, and we’ll keep working hard to grow the economy, reduce the cost of living, and make life easier for you.
Thank you,
Nicola Willis
Minister of Finance
