Nicola Willis Welcomes OCR Cut to 5.25% as Relief for Families and Businesses

The Finance Minister praised the government's strategy to combat inflation, stating that the measures are beginning to show positive results.

Finance Minister Nicola Willis has welcomed the Reserve Bank's decision to cut the Official Cash Rate (OCR) to 5.25% today, describing it as a much-needed relief for New Zealand families and businesses.

“New Zealand has been grappling with a severe cost-of-living crisis since mid-2021, with stretched food budgets, high mortgage repayments, and low confidence in various sectors,” Ms. Willis said. “I am pleased that the Reserve Bank’s decision to lower the OCR indicates confidence that inflation is under control and that the period of extreme price increases may be over.”

The OCR reduction is expected to reduce interest rates on mortgage loans and credit cards, providing further financial relief to households. Combined with recent tax relief measures, this cut is anticipated to lower the cost of living for families.

“This decrease also signals that the tough conditions businesses have faced are starting to ease,” Ms. Willis noted. “This should encourage businesses to invest, hire, and grow, fostering economic recovery.”

The Finance Minister praised the government's strategy to combat inflation, stating that the measures are beginning to show positive results. “While it is still early days and there is more work to be done, today’s announcement is a promising sign that New Zealand is on the path to recovery,” Ms. Willis added.