OCR Terminal Rate

Gerald Mullaney

9 March 2025

The govt is moving fast to get the OCR down to the terminal rate, the low in this cycle.

The reseach concludes that the 9 April 2025 will be the date the OCR will reach a low of 2.50%

Depending on bank margins, inflation, there is the possibility that we could see a low retail interest rate sometime in April 2025 in a range 3.99% to 4.99%

There is the possiblity the retail rates could go lower depending on how much further the economy deteriorates into 2025 - 2026

Rates would most likely stay low for 12 to 18 months then the rates may move higher due to inflation.

How ever due to volatile markets the low may not stay for long possible 3 to 6 Months.

It does look like rates may settle at 1.00% higher than the low of 2.99% in 2021

The whole management of debt requires the debitor to be vigillant as to when a great low rate and term could be secured.

With the huge volitility fixing for, as low as you can, for as long as you can to secure stability and security.