RBNZ lowers rates to 5.25%

Source: Reuters

Reserve Bank Governor Alan Bollard today cut the official cash rate (OCR) by a quarter of a percentage point to 5.25 per cent in an effort to shore up "fragile" confidence and prevent a "hard" economic landing.

The cut was universally expected by economists, the more optimistic of whom had forecast a half percentage point cut. Banks are certain to follow Dr Bollard's move with mortgage and business rate cuts to match and borrowers can look forward to more to come.

"Our current