OCR CUT FEB 19 2025

Author Gerald Mullaney

Right on target the RBNZ cuts the OCR by 50 basis points down to 3.75%. as at the 19 Feb 2025.

The trend is right on track for an OCR to go as low as between 2.5% and 3.50% by mid to late 2025. Possible by mid year.

The preparation and plan is underway for boyant times from 2026 2027 and beyond.

This does not mean a property boom this mean the economy is getting back on track as there are so many other things that make the economy tick other than property.

Property in some location is way over priced and it looks like property may drift much lower over the next one to three years.

That is going out to to 2027.

There are other things that matter in the economy that growth will happen such as infrasture, re building, and building business back on tract.

Building a new economy, new business new jobs, real jobs that produce goods and services not sitting in front on the laptop sending out message, real production of goods and services.

The Govt and the RSBANK NZ are doing a wonderful job in getting the economy back on tract.

It's not going to magically happen over night or go back to the old way but a new economy is on the way.

OCR it's getting closer 2, 3.

The market holds it breath gasping in anticipation of a cut in the OCR on 20 Feb 2025 the forecast is a definate 50 basis point cut.

The cut will help debitors and penalise savers. It won't solve all the problems, of which there are many, one being over priced, over bought,over speculated, over built and the greed that caused huge distortation in property and stock market. Prices are now way off the peak of 2021 as at Feb 2025.

The governor of the RSBNZ is to be applauded, in his efforts in getting the economy, the property market back on tract. Its going to take awhile by Dec 2025 prices maybe more realistic bargins are to be had as the year progress.

In Summary the OCR is heading slowly down to 2, 3% or below in 2025 as the economy grasps at the NEW REALITIES.

Author

Gerald Mullaney