Reserve Bank interim governor Christian Hawkesby chose not to influence financial markets to maintain lower interest rates after a 25 basis point cut to the Official Cash Rate (OCR), now at 2.25%. This decision surprised traders, leading to a 20 basis point increase in two-year swap rates. The market reacted to the suggestion that the bank may be done cutting rates, as one Monetary Policy Committee member voted to keep rates unchanged. Analysts noted that this shift could result in a surge of borrowers opting for fixed-rate mortgages, countering the impact of the recent rate cut.
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