Photo: RNZ
It look just minutes yesterday for retail banks to begin dropping interest rates for borrowers after the momentous Reserve Bank decision.
For the first time in four years the official cash rate was cut by quarter of a per cent with the central bank governor Adrian Orr saying it was time to take the foot off the economic brake.
Dr Orr says the cut was warranted because annual inflation is heading back to the target range of 1-3%, and appears to be coming under control in economies around the world.
And he says borrowers can expect rate cuts throughout the rest of this year and next.
Stephen Toplis is head of research at BNZ.
