Misc

OCR reduced to 5%

The Reserve Bank today reduced the official cash rate (OCR) from 6.5% to 5.0%.

Thursday, December 04th 2008

Reserve Bank Governor Alan Bollard commented that "ongoing financial market turmoil and the marked deterioration in the outlook for global growth have played a large role in shaping today's decision.  Activity in most of our trading partners is now expected to contract or grow only
very slowly over the next few quarters.  

"Economic activity in New Zealand will be further constrained as a result, compared with our view in October. 

"Inflation is abating here and overseas as a consequence of these developments. We now have more confidence that annual inflation will return comfortably inside the target band of 1 to 3% some time in the first half of 2009 and remain there over the medium term.  However, we still have concerns that domestically generated inflation (particularly local body rates and electricity prices) is remaining stubbornly high.

"Today's decision brings the cumulative reduction in the OCR since July to 3.25%, and takes monetary policy to an expansionary position.
Given recent developments in the global economy, the balance of risks to activity and inflation are to the downside.  Thus it is appropriate to deliver this reduction quickly to support the economy and keep inflation from falling below the target band. 

"Monetary policy is working together with the depreciation of the New Zealand dollar and the fiscal stimulus now in train, to provide substantial support to demand over the period ahead and to create the conditions for some rebound in growth as global conditions improve.
"To ensure the response we are seeking, we expect financial institutions to play their part in the economic adjustment process by passing on lower wholesale interest rates to their customers.

"Further movements in the OCR will be assessed against emerging developments in the global and domestic economies and the response to policy changes already in place." 


Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
Wairarapa Building Society 7.15
BNZ - Classic 7.24
TSB Special 7.24
ASB Bank 7.24
ANZ Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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