Hon Nicola Willis
Minister of Finance

Today’s cut in the Official Cash Rate (OCR) to 5.25 per cent is welcome relief for families and businesses, Finance Minister Nicola Willis says.

“New Zealand has been suffering an acute cost-of-living crisis since the middle of 2021, with weekly food budgets stretched thin, mortgage repayments high and confidence in our living rooms, offices and boardrooms low.

“I am pleased the Reserve Bank’s decision to lower the OCR today shows it has confidence that inflation is under control and the era of extreme price increases is over.

“This also means Kiwis will pay less interest on their mortgage loans and on their credit cards. Taken together with our recent tax relief package, the cost of living will be even further reduced for families.

“Today’s drop also tells us the hard conditions business have faced are easing, and that in turn will give businesses the confidence to invest, hire and grow once again.

“This Government has delivered on its promise to Kiwis – our careful and deliberate plan to get on top of inflation is working, and we are seeing the green shoots of recovery.

“It’s early days and there is more work to do, but for now, today’s announcement is an encouraging sign that we’re getting New Zealand back on track,” Nicola Willis says.

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