It has been an eventful week in New Zealand. In a surprise move, the Reserve Bank cut the Official Cash Rate down to just 1%. Forecasters were expecting a lesser .25 percent cut, but according to RBNZ, the economy needed more stimulus to help counter the worsening international outlook, and to meet employment and inflation objectives.
So, bad news for savers, investors and importers; but good news for borrowers and property buyers. The banks have reacted quickly by reducing their mortgage and savings rate. While there were no dramatic cuts, especially for fixed-term borrowers, renters may want to head to a mortgage calculator and check whether their situation has improved.
There are expectations that the OCR will drop to 0.75% or even lower this year, so keep your clients in the know. Our advisers at Mortgage Link can help them make the most of the low interest rate environment.
To get in touch with the team at Mortgage Link, please contact:
021 835 506
Disclaimer: In preparation of this publication all care has been taken, however no warranty is provided as to the accuracy of the information and, as such, no responsibility is taken by Pivotal Financial for any errors or omissions.
This publication does not constitute personalised financial advice, may not be relevant to individual circumstances and should not be seen to constitute a recommendation of any description. Before taking any action in relation to matters dealt with in this publication please seek Professional Financial Advice.
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