The OCR dropped 25 basis points again yesterday - but many homeowners have wondered why their mortgage rates haven't followed.

Many people currently on floating rates have yet to see the impact of the cuts materialise, and there's usually a week-long delay OCR changing and banks following suit with their various mortgage rates.

Kent Duston from the Banking Reform Coalition says it's unclear why it takes the banks so long to adjust things.

"After all, it's no harder than just hitting the return key on the keyboard. Really, there's no reason why it should not happen on the exact same day that the Reserve Bank lowers the OCR."

LISTEN ABOVE

The OCR dropped 25 basis points again yesterday - but many homeowners have wondered why their mortgage rates haven't followed.
Many people currently on floating rates have yet to see the impact of the cuts materialise, and there's usually a week-long delay OCR changing and banks following suit with their various mortgage rates.
Kent Duston from the Banking Reform Coalition says it's unclear why it takes the banks so long to adjust things.
"After all, it's no harder than just hitting the return key on the keyboard. Really, there's no reason why it should not happen on the exact same day that the Reserve Bank lowers the OCR."
LISTEN ABOVE

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Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.

Best of Business

Kent Duston: Banking Reform Coalition spokesperson explains why banks take so long to pass on OCR savings

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/14734551-4372-4a1e-88a7-b2bb0074b6f7/transcript