Official Cash Rate (OCR) now at 3%

Written By Kim Manunui

What a difference a year makes with 2.5% shaved off the OCR in 12 months since August 2024.

Since the aftermath of Covid we saw the OCR peak at 5.5% in May 23 where it sat for 15 months to Aug 2024 while inflation and related matters settled down.

Easing 7 times in 12 months, on 20th Aug 2025 the OCR eased a further 0.25% to arrive now at 3% being long considered the neutral rate of neither restrictive nor stimulative Monetary Policy, a significant target and milestone in the recovery journey.

That means that once everything catches up and mortgages refix onto the new lower rates, that significant easing flows through the economy with 2.5% representing around $350 FN on a $500k, 25 year mortgage.

As those incremental changes start to become meaningful, so too does the economy start to turn which is where we’re at right now … like a cruise ship slowly turning direction and as confidence builds on the turn, pulling away and building up a head of steam to power away in the right direction creating demand and bringing GDP, employment and house prices with it.

From here, all indicators are pointing to further cuts through the year to maybe as far as 2.5% OCR taking us slightly into stimulative territory, just enough to give us the boost we need to really get going through the rest of the year and into 2026 while maintaining a steady hand at the wheel in light of geopolitical factors at play.

Click here for the official OCR announcement.

Click here to see the historic OCR rates chart and announcements.

For more on the above, click on the link below

Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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