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And there it is—the good news we've all been waiting for. The RBNZ has delivered a 0.25% OCR cut today, and interest rates are finally on the way down again. So, what does that mean for Kiwi borrowers, and the New Zealand economy?

The RBNZ's outlook on interest rates has chopped and changed pretty dramatically in recent months. Ahead of this week's OCR announcement, on August 14th, David Cunningham looks at what's behind this flip-flopping, and how it might be mitigated in future.

House prices have been on a wild ride in recent years, driven by low interest rates during the pandemic, and the subsequent Covid-mania—then regret—that gripped NZ's housing market. But now, things appear to be back on a more even keel.

As New Zealand holds its collective breath, waiting for interest rates to start falling again, here are the key OCR announcement dates you need in your diary for 2024 and 2025.

It finally looks like inflation is back in its box, and that means interest rate falls should be on the cards for sometime in 2024. But—with all the latest data pointing to a country firmly in recession—what cost has our battle against inflation had for New Zealand's economy?

Every quarter, the NZIER surveys a bunch of economic forecasters—from some of our largest financial institutions—to get their predictions of what's in store for our economy. Now, we know even the experts get it wrong sometimes, but how can they be getting it *this* wrong?

Starting on the 1st July 2024, new DTI rules will come into effect in New Zealand, and just like with any new banking regulation they'll bring with them big changes for different parts of the housing market. So we've done a review of how the new DTI rules could impact you.

Ask the RBNZ, and it'll tell you it's putting DTIs in place to address concerns around affordability, and keep our financial system nice and stable. But Squirrel founder, JB, reckons the new rules are a ruse for the RBNZ to meddle where it shouldn't be - in wider housing policy.

The Reserve bank has grown more concerned about the pace with which inflation is falling in New Zealand, and have slightly delayed their pick for when they cut the official cash rate from the middle of 2025 into the second half. But will there be a chance that house prices will start falling while the OCR stays stuck at 5.50%?

Despite plenty of economic data showing enough damage has been done, the RBNZ is adamant rate falls won't be on the cards until 2025. And the reason for that, it turns out, is all down to a single number in the RBNZ's latest inflation forecast.

The Reserve Bank has a tradition of being too slow to hike and cut and is likely to continue this tradition because of its poor forecasting and lack of understanding of what is going on at the coalface of the economy. The market, however, is usually quicker to respond — will it be the one to lead a fall in interest rates this year?

Most commentators are picking it'll be late 2024 (or worse, 2025) before interest rates start falling again — but the Chief, David Cunningham, reckons there's a strong case for the RBNZ to begin dropping rates much sooner.