Significant number of borrowers still hanging out for OCR cuts

The RBNZ held the OCR at 3.25% and indicated it will probably cut again next month if the data flow and other developments over the next six weeks meet expectations.

Most banks have already pencilled in a further 0.25% cut next month and maybe a further one at the end of the year. In its outlook the ANZ has even dropped in a third cut for February next year.

The OCR has declined from 5.5% in August last year to 3.25% but some borrowers and economists feel the RBNZ could do more.

Borrowers, especially investors, are hanging out for lower mortgage rates.