OCR DROP

PHOTO: 1NEWS

The Reserve Bank has announced that the official cash rate (OCR) will be cut to 5.25%, following weeks of speculation about a potential reduction, marking the first drop in four years.

The Reserve Bank Of New Zealand finally makes a rates cut

Kiwibank swiftly responded to the OCR cut, decreasing its variable home loan and business lending rates by 0.25%, and reducing some deposit rates. ASB, ANZ, and Westpac quickly followed suit, adjusting various rates in response.

The OCR had peaked at 5.5% in May last year after a series of increases since late 2021.