- Hon Nicola Willis
Kiwi families and businesses will be heartened by the Reserve Bank's positive outlook for 2026 on the back of another reduction in the Official Cash Rate, Finance Minister Nicola Willis says.
As expected, the Reserve Bank today reduced the Official Cash Rate (OCR) by 25 basis points to 2.25 per cent, the ninth reduction since rates peaked at 5.5 per cent in July 2024.
"It is clear previous reductions in the OCR are flowing through into stronger economic activity," Nicola Willis says.
"The bank is forecasting falling inflation and rising growth. Its forecasts support the widespread consensus that the economy is strengthening.
"For many households, lower interest rates mean more choice.
"Reserve Bank data shows that 80 per cent of mortgage lending has come up for renewal since the bank began reducing the OCR in August last year.
"That means more money in Kiwi pockets. In addition, thousands of Kiwis are taking the opportunity presented by lower rates to buy their first homes.
"In the 12 months to September, 23,600 households bought their first home, the most since 2021.
"New Zealanders have had a tough few years, but things are looking up."
