Talk Money: August 8

  • 08/08/2016
Talk Money: August 8

It looks certain the Reserve Bank will cut interest rates on Thursday but just how big will the rate cut be?

Most economists think the Reserve Bank (RBNZ) will cut the Official Cash rate by 0.25 percent however there have been suggestions the RBNZ could cut interest rates by half a percent.

The other question is, how much of the cut will the commercial banks pass on to their customers?

Despite OCR cuts of half percent since the start of December 2015, so far only about thirty five basis points (0.35 percent) has been passed on to customers.