New Zealand's central bank is set to cut interest rates, but mortgage rates may not follow suit.

The Reserve Bank of New Zealand is expected to lower its official cash rate by 50 basis points this week, with further 25 basis point cuts starting in February. While the OCR will drop to around 3%, borrowers shouldn't expect significant reductions in home loan rates, as retail rates are likely to stay between 5% and 5.5%. Increased wholesale swap rates for longer terms are adding pressure on mortgage rates, complicating the impact of the OCR cuts.

November 25, 2024
3 Articles

Further Reading