ZB ZB
Live now
Start time
Playing for
End time
Listen live
Listen to NAME OF STATION
Up next
Listen live on
ZB

Former RBNZ economist: OCR cut was expected

Author
Newstalk ZB staff,
Publish Date
Wed, 8 May 2019, 6:19PM
Reserve Bank Governor Adrian Orr. (Photo / File)

Former RBNZ economist: OCR cut was expected

Author
Newstalk ZB staff,
Publish Date
Wed, 8 May 2019, 6:19PM

The big decision made a big decision to cut the Official Cash Rate to an all time low of 1.5 per cent.

In the Reserve bank's statement, the banks says trade concerns are still around, domestic growth is slowing, house prices are softening and business sentiment is low.

Former Reserve Bank economist Michael Reddell says it is something he expected.

He says inflation has been below target for years, growth has been weakening, the likelihood of inflation picking up was diminishing.

All eyes on how banks react to New Zealand's lowest interest rates ever.

ANZ and Kiwibank have already announced they will cut home loan and deposit interest rates.

Reserve Bank governor, Adrian Orr, says banks have a decision to make on their responses.

He says there will be those who want to take the opportunity to increase their margins, and others who lower their rates to attract more customers.

LISTEN TO MICHAEL REDDELL TALK WITH MIKE YARDLEY ABOVE.

Take your Radio, Podcasts and Music with you