The New Zealand Official Cash Rate has reached the lowest level since its creation.

The January 29th Official Cash Rate (OCR) announcement followed what many already thought would happen, although to a greater degree. The OCR was cut 150 basis points to the lowest level it has ever been at, reaching 3.5%.

Kiwibank and Westpac have already adjusted their one year fixed term home loan interest rates accordingly, but Reserve Bank Governor Alan Bollard urges other banks to do the same and pass the lower rates to customers. The interest rate cut had positive effects on early morning trading on the New Zealand Stock Exchange (NZX). Although falls were seen with the New Zealand dollar falling below 52 cents against the U.S. Dollar.