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Photo: RNZ RBNZ cuts official cash rate by 50 basis points to 4.75% - lowest since February 2023 Slowing inflation and subdued economy justify bigger cut Economists and financial markets overwhelmingly backed 50 basis point cut RBNZ says the size and speed of future cuts will be determined by state of the economy Retail banks already cut some rates in anticipation The Reserve Bank has cut its benchmark cash rate by 50 basis points. The central bank cut the official cash rate (OCR) to 4.75 percent, as expected, to its lowest level in 18 months, saying the bigger than usual rate cut was justified by slowing inflation and the slack in the economy. "The Committee agreed that it is appropriate to cut the OCR by 50 basis points to achieve and maintain low and stable inflation, while se...

Photo: RNZ If you're refixing your home loan, it's worth pushing for a rate discount, brokers say - because there are often "secret" specials and cash back incentives available. ANZ surprised the market on Tuesday with a 5.59 percent one-year fixed term made available on its app. It was still advertising a one-year fix at 6.19 percent. The cheaper rate was available to borrowers with at least 20 percent equity. Mortgage adviser Karen Tatterson, of Loan Market, said she had not seen other banks match the ANZ rate yet but ASB had reduced a number of its rates by 10 basis points on Wednesday morning - and its one-year rate by 16. "ANZ does tend to offer a slightly lower than carded rate if we push for this but it is dependent on the swap rate and what the market expectations are." She said ...

Photo: RNZ Home affordability is improving almost everywhere in the country, but debt-to-value restrictions means average house prices in the biggest cities will continue to be a stretch for those earning an average income. Massey University's Home Affordability Report indicates there had been a 4.4 percent improvement in the national rate of affordability in the three-month period ended in August, following a trend which began in the last three months of 2023. The report shows the median house price was down in 11 regions, with the greatest decrease being in the West Coast region, where values fell nearly 12 percent or by $48,000. "These latest results have fed into the 0.3 percent decrease in median house prices we've seen overall this year," report author Dr Arshad Javed, from the Mas...