Reserve Bank governor believes rates can go lower
At a press conference following the RBNZ's latest Financial Stability Report, Orr was asked whether loan rates could fall further, following action taken by the central bank to push down rates since the Covid-crisis.
Orr acknowledged a "delay working through the system" in passing on cuts since the official cash rate was lowered. He said the Reserve Bank believed banks had "more room to go" to push prices even lower.
Aside from cutting the official cash rate to 0.25%, the Reserve Bank has ramped up the pressure on banks to pass on rate cuts in recent weeks.
Mortgage rates have dropped to record lows in the past week, with Kiwibank offering a 2.65% one-year rate, and ASB offering 2.69% over two years.
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