The Official Cash Rate has been cut by 25 basis points and is now at 3%, the Reserve Bank announced today.
The change had been widely expected by economists, and had already been priced in by the big four banks, which cut interest rates for borrowers and savers last week.
Prime Minister Christopher Luxon and Finance Minister Nicola Willis are due to hold a press conference about the cut at 3pm.
Willis previously said she welcomed the decision to “respond to a difficult second quarter of the year with more stimulus”.
“The falling OCR means repayments on a 25-year $500,000 floating mortgage are about $330 less a fortnight today than they were a year ago.
“That makes a big difference to the family budget and, as more mortgages come up for refinancing, more households will benefit. About 40% of fixed mortgages are due to come up for repricing in the next six months.”