Official Cash Rate Eases to 3.5%

Written By Kim Manunui

With the Official Cash Rate ( OCR ) now eased a further 0.25% to 3.5% on April 9th, we’re well on our way to our desired neutral rate of 3% and finally recovering from the madness of the last five years.

Banks have been quick to react dropping floating mortgages rates by 0.25% with fixed rates largely remaining as they were from previous announcements … until this week with some lowering to 4.99% not just on 2 year but now also on 18 month and 1 year rates. So the easing is continuing as planned with more expected in the coming months.

With a new Reserve Bank Governor and calls for further OCR cuts we may get to 3% OCR even sooner than expected with 2.75% OCR even being bantered around, this bodes well for the 45% of mortgages coming off fixed rates in the next 6 months and 70% in the next 12 months.

The Reserve Bank have done a great job of keeping a steady hand on the tiller while bringing inflation under control from its peak of 7.3% in June 2022 to near the mid target range of 2% and will need to continue to do so as it negotiates the new unchartered Geopolitical waters and yo-yo economics playing out right now.

While this may affect the speed at which we get there, the great thing for NZ is we’re less exposed and better placed than most to ride the wave with inflation under control, house prices and the labour market stabilising and GDP set to improve progressively throughout the year.

Easing interest rates puts more money in the pockets of Kiwis which enables savings and discretionary spending that in time creates demand which means production and jobs providing the impetus for economic growth … provided we buy NZ made or NZ owned.

Click here for more on the latest Reserve Bank OCR announcement

Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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