NZ Official Cash Rate down to 2.5%
30 April 2009
The Reserve Bank today reduced the Official Cash Rate (OCR) by 50 basis points to 2.5 percent.
"We expect the large decline in the OCR over the past year to pass through to more borrowers over coming quarters as existing fixed-rate mortgages come up for re-pricing. This, together with the stimulus from fiscal policy, will act to support the New Zealand economy and eventually see activity trough and pick up thereafter. However, the scale of the global financial crisis and domestic adjustments underway are such that it is likely to be some time before economic activity returns to robust and healthy levels.” Reserve Bank Governor Alan Bollard said.