As anticipated Reserve Bank cuts OCR
Reserve Bank Announcement 19 February 2025…
Today the OCR was reduced to 3.75%.
Inflation remained at 2.2% in the last 3 months of 2024.
Economic activity has been weak, but we expect it to improve over this year.
Unemployment has increased, but businesses will hire more as the economy improves.
Our thoughts…
For borrowers reviewing their floating rate or re-fixing, RBNZ has initiated 2025 with an Official Cash Rate decrease of .5% to 3.75%.
Being a highly anticipated OCR outcome, the .5% decrease was not much of a surprise in the industry.
What’s most important is to look through the “OCR decrease” noise and consider the loan structure that’s right for you.
Pro tip – if you are looking at a short-term fixed rate, floating rate, or generic loan strategies, it is likely time to review with a mortgage adviser in order to take maximum advantage of today’s update.
If you are unsure about your structure or have loans being reviewed, let’s talk. We love a good interest rate chat! So, get in touch at Hawkeye Finance for mortgage advice specific to you.
Alfonso Jaques, Director, Hawkeye Finance
Fine Print
Disclaimer: This article is not financial advice. It is informational only and should not be considered as formal financial or legal advice. For advice based on your unique circumstances please speak to us directly.