Luxon: Our responsible economic management is paying off

• By Christopher Luxon, Prime Minister

Kiwis received welcome news recently as the Reserve Bank again reduced the Official Cash Rate (OCR).

The latest reduction means the OCR has now fallen from 5.5 per cent to 3 per cent in just a year.

The Reserve Bank has also signalled two further reductions this year. This gives banks the confidence they need to lower their loan rates – representing real savings.

Mortgages, businesses loans, and credit cards will all be cheaper as a result of this decision.

If you’re one of the half of mortgage holders ready to refix in the next six months, you could see savings of hundreds of dollars a fortnight.

Repayments on a 25-year, $500,000 floating mortgage are about $330 less a fortnight today than they were a year ago. That’s money in your back pocket.

Falling interest rates are also good for growth. They support businesses to expand, encourage increased construction activity, and create more and higher-paying jobs.

This comes as the Government has announced that $6 billion worth of projects – including new roads, hospitals, schools and courts – will kick off before the end of the year.

Not only will these projects, when completed, make all Kiwis better off, but this investment will support those in and around the construction sector by creating thousands of jobs across the country.

Our Government’s responsible economic management is making a difference.

Stopping wasteful spending has eased inflation and allowed the Reserve Bank to lower the OCR.

There’s more to do, but this Government is doing the hard yards to get the economy growing to help you and your family get ahead.