RBNZ Cuts the OCR – What It Means for Borrowers

Financial Adviser, Director from adviceHQ

"On Wednesday 20 August, the Committee voted on the options of either reducing the OCR by 25 basis points or reducing the OCR by 50 basis points. By a majority of 4 votes to 2, the Committee agreed to decrease the OCR by 25 basis points to 3 percent."

"Further data on the speed of New Zealand’s economic recovery will influence the future path of the OCR. If medium-term inflation pressures continue to ease as expected, there is scope to lower the OCR further."

Notably, the terminal OCR forecast has shifted lower – from 2.85% in Q1 2026 to 2.55%, a 0.30% drop since the last Monetary Policy Statement.

Markets reacted with the 1-year swap rate falling 0.25%, signalling expectations of further easing.

This leaves the door open for retail banks to trim fixed mortgage rates in the coming weeks.

With 50% of borrowers due to refix this year, this could mean some welcome relief on mortgage repayments as the year progresses.

👉 If you’re coming up for refix or want to review your mortgage strategy, now’s the time to start the conversation. Call adviceHQ today.

#adviceHQ #RBNZ #ocr