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

Help us create a sustainable future for independent local journalism

As New Zealand moves from crisis to recovery mode the need to support local industry has been brought into sharp relief.

As our journalists work to ask the hard questions about our recovery, we also look to you, our readers for support. Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.


Newsroom does not allow comments directly on this website. We invite all readers who wish to discuss a story or leave a comment to visit us on Twitter or Facebook. We also welcome your news tips and feedback via email: Thank you.

With thanks to our partners