The official cash rate falls by 50 basis points.
Finance Minister Nicola Willis has welcomed a significant drop in the official cash rate, expected to bring relief to many Kiwis. The latest decrease is the third since August and marks a total fall of 125 basis points.
A family with a $500,000 mortgage on a 25-year term could save around $180 per fortnight if their rate drops from 7 to 5.75 percent. However, the impact will vary depending on individual circumstances such as mortgage size and type.
The reduction is part of a broader package of measures aimed at supporting Kiwi families and businesses. In addition to this cash rate drop, tax relief has taken effect since July 31, while FamilyBoost childcare payments have also been introduced.
For businesses, lower interest rates mean reduced borrowing costs and increased economic activity. Finance Minister Nicola Willis believes the steps taken by the Government are having a positive impact on the economy, but acknowledges there is still a long road ahead.