The Property Academy Podcast OCR cut: How Trump's tariffs will make your mortgage cheaper ⎥ Ep. 2037
Apr 9, 2025
They unpack the Reserve Bank cutting the OCR to 3.5% and what that means for mortgage pricing. They discuss how Trump’s tariffs could slow trade and push down inflation in New Zealand. They note which banks have already trimmed floating and test rates. They explore who is most exposed to tariff risk and whether it should affect your property plans.
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OCR Cut Brings Rates To TwoYear Low
- The Reserve Bank cut the OCR by 0.25%, taking it from 3.75% to 3.5% as the fifth consecutive cut.
- That equals a 2.0% fall in the OCR over nine months, the lowest level since October 2022.
Tariffs Could Cool NZ Inflation
- The Reserve Bank sees Trump's tariffs as a downside risk to NZ economic activity and inflation.
- Fewer international trades could cool demand for NZ exports, lowering domestic inflation and easing pressure on interest rates.
Committee Sees More Cuts Possible
- The Monetary Policy Committee members largely judged tariffs will reduce inflation but some were uncertain.
- The committee signalled readiness to lower the OCR further if tariff effects deepen and the economy weakens.