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Finance Minister applauds Reserve Bank’s decision to cut OCR

Author
Newstalk ZB,
Section
Audio,
Publish Date
Thursday, 8 August 2019, 10:23AM

The Government says a decision by the Reserve Bank to slash the Official Cash Rate validates its spending decisions.

In a surprise move, the OCR's been cut by 50 basis points to one percent.

The Reserve Bank says low interest rates and extra government spending will increase demand for the country's goods and services.

Finance Minister Grant Robertson told Mike Hosking it's a great time to invest in New Zealand, with interest rates so low.

He says the Reserve Bank has effectively backed what the Government's doing by spending and investing more.

"The decision by the Reserve Bank says that now is a great time to be investing in New Zealand. It’s also good news for mortgage holders or those seeking a mortgage, but not so great for savers."

Robertson believes bank's governor Adrian Orr clearly wanted to get ahead of the curve with yesterday’s announcement.

ON AIR: Andrew Dickens Monday Afternoons

12PM - 4PM