Watch: Why interest rates will stay lower for longer
*Watch the full interview in the video player above*
Kiwibank’s chief economist Jarrod Kerr and head of financial markets Peter Hunt discuss the Reserve Bank’s decision to cut interest rates.
The drop in the official cash rate from 1.75 percent to 1.5 percent has seen banks cut their fixed term mortgage rates.
Kerr says he now expects interest rates to stay lower for longer and movements in the price of the Kiwi dollar to become more volatile.
The dollar fell quickly after the announcement but has now regained most of its losses.
Kiwibank is a founding sponsor of Newsroom.co.nz