Interest rates tumble in face of financial crisis

Reserve Bank Governor Alan Bollard is expected to hack more than 1 per cent off the official cash rate next week in an attempt to bring down interest rates and revive the flagging economy.

Market commentators are picking Dr Bollard will cut up to 150 basis points on Thursday week.

This would bring the rate down to its lowest level in five years.

The move comes amid continuing global economic turmoil and attempts by governments and central banks to help struggling businesses and consumers.

In other developments yesterday;

The BNZ joined other banks in reducing fixed-rate mortgage interest in anticipation of a Reserve Bank cut.

The US government unveiled a $37 billion bailout of the Citigroup bank, which was America's biggest before the start of the credit crunch.

To read the full NZ Herald Story, click here

Posted: 25 Nov 2008

News articles