OCR cut - comment from Brian Jolliffe

Comment attributable to Brian Jolliffe, Managing Director, MARAC:

“On the back of today’s cut to the Official Cash Rate, it’s a good time for investors who rely on income from fixed interest investments to seek advice on making the most of their money going forward as interest rates are likely to continue falling. Investors should consider locking in longer terms on fixed interest investments to take advantage of higher long term rates.”

“New Zealand has had very high interest rates by international standards and this has given the Reserve Bank the ability to cut the OCR significantly. Hopefully the knock-on effect of this rate cut will help alleviate some of the financial pressures felt by many New Zealanders and provide stimulus to the economy at a time when it is needed.”

“Many small businesses have been struggling over the last six months with lower demand, increasing raw material and wage costs, and high interest rates. We expect the OCR cut on top of previous reductions will flow through to lower borrowing rates for most businesses and will come as a welcome relief as they enter the New Year.”

ENDS

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