Reserve Bank of NZ cuts interest rates, but dollar still jumpsSUPPLIEDThe Reserve Bank has cut the official cash rate (OCR) to a new all time low of 2.0 per cent, but borrowers are set to see little saving. On Thursday afternoon, Westpac dropped its interest rate on its floating rate mortgage by 0.1 percentage points, and hiked the interest rate on its six month term deposit by 0.5 percentage points. The New Zealand dollar immediately jumping against the US dollar, climbing almost 1c to just under US73c. "Weaker than expected data or persistent [New Zealand dollar] strength could bring easing forward to September," Tuffley said. ASB chief economist Nick Tuffley said he continued to expect that the Reserve Bank would cut interest rates again in November, however there was a risk that the bank may go further, or act faster.

Source: Stuff August 10, 2016 19:31 UTC