About this video

• Video Title: #BHN Why the OCR being slashed won't make a jot of difference in the economy
• Channel: Big Hairy Network
• Speakers: Jent, Chewy, Craig Renie, Zane Small (reporter), Zoe Fischer, Steven Robertson
• Duration: 00:27:36

Overview

This video discusses the recent slashing of the Official Cash Rate (OCR) by the Reserve Bank and analyzes its potential impact on the New Zealand economy. While the cut is presented as good news for mortgage holders, the speakers argue that its effect is limited and temporary, and that broader economic issues remain unaddressed due to conflicting government policies.

Key takeaways

• The Reserve Bank has cut the OCR by 50 basis points to 2.5%, the lowest rate since July 2022.
• This cut may benefit homeowners who are about to fix or are on a variable mortgage rate, potentially saving them money.
• However, the speakers emphasize that this benefit is not universal and depends on individual mortgage circumstances.
• The effectiveness of the OCR cut as an economic stimulus is questioned, as it takes time to transmit through the economy and may be counteracted by government policies that slow spending and investment.
• Concerns are raised about the overall health of the New Zealand economy, with mentions of job losses, low consumer confidence, and a lack of sustainable growth drivers.
• The discussion highlights the difference between monetary policy (OCR cuts) and fiscal policy (government spending/taxation) in influencing the economy.