Reactions spring from commentators

Commentators were quick yesterday to have their say on the Reserve Bank cutting its official cash rate by 0.5% to 2.5%.

SBS
Floating rate to 5.65%, the lowest since 1965

SBS finance general manager Tim Loan: "We always look to provide our customers with direct benefits and know today's announcement will provide another form of relief to many who have been negatively impacted by the Christchurch earthquake."

Kiwibank
Floating rate to 5.65%

Chief executive Paul Brock: "This is an excellent opportunity for Kiwibank to lead the charge to provide real savings for home loan customers."

BNZ
Standard floating rate 5.99%

BNZ treasurer Tim Main: "Rebuilding Christchurch and supporting confidence more broadly in the economy is extremely important and the BNZ has no hesitation in passing on today's rate cut."

ASB
Floating rate to 5.75%

Chief executive markets Catherine McGrath: "While the OCR is just one factor that we consider when setting out interest rates, we hope that by dropping our variable lending rates now we can assist the Reserve Bank to alleviate the new financial pressures now confronting so many New Zealanders."

ANZ-National Bank
Floating rate to 5.74%

CTU economist Bill Rosenberg: "This recognises not only the effects of the disastrous Christchurch earthquake but the fact that the economy is in, or at least close to, recession again. It was the right action to take."

BNZ markets economist Stephen Toplis: "It was always going to be a difficult statement for the Reserve Bank and it was always going to get things wrong in someone's eyes. At least now the decks have been cleared and we can go back to genuine economy-watching rather than being driven by sentiment."

ANZ economist Khoon Goh: "We have pencilled in the first rate hike for December 2011, given our view that inflation will prove less benign than the RBNZ has projected, and that the economy has the potential to turn more sharply in the latter part of 2011. Indeed, a combination of the Rugby World Cup activity, the ramping up in reconstruction work and the diffusion of a massive terms of trade boost looks set to boost economic activity late in the year."

 

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