The Reserve Bank has lowered the Official Cash Rate (OCR) to 3 percent, trimming 25 basis points, as inflation edges toward the top of its 1 to 3 percent target band.

The Monetary Policy Committee says easing pressure in the economy should return inflation to its 2 percent midpoint by mid-2026.

The move comes after signs New Zealand’s recovery stalled in the June quarter.

Household and business spending has been hit by job losses, high living costs, and weaker house prices.

The Committee noted many families are dipping into savings to cover essentials like food, power, fuel, and council rates.

Locally, Coast households and businesses are feeling the same squeeze.

Rising rates and energy costs are being noticed here just as much as anywhere else, while falling house prices are weighing on confidence.

A drop in mortgage rates over the coming months may provide some relief.

The Committee voted 4–2 in favour of the smaller cut, saying the balance of risks sits both ways.

If inflationary pressures ease further, more reductions are possible.

For Coasties, the decision matters because the OCR directly influences mortgage and term deposit rates.

With around half of existing mortgages due to re-fix in the next six months, lower rates could help ease pressure on family budgets and free up more spending across the community.

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