Marac Comment On OCR
Comment attributable to Brian Jolliffe, Managing Director, MARAC:
"Today's announcement regarding the decrease in the Official Cash Rate will be welcomed by the business community who are looking for a kick start in activity after a prolonged period of difficult economic conditions.
"The reduction in interest rate is also good news for homeowners and it will put more money back in the pockets of New Zealanders.
"However, with interest rates about to fall, those who rely on fixed interest investments for income, and who have experienced a significant increase in the day-to-day price of commodities already, may have to tighten their belts further. Now is a good time for those investors to lock in longer terms on fixed interest investments to take advantage of the high rates currently being offered."