Navigating Uncertainty

Reserve Bank Announcement 28 May 2025…

“When life give you lemons, make lemonade” - an appropriate adage for last Wednesday’s OCR and Monetary Policy Statement.

Translated: when uncertainty prevails, give yourself certainty!

RBNZ labored the point of uncertainty, tariffs, and for the first time in the easing cycle, consensus was not reached by the Monetary Policy Committee in decreasing the OCR to 3.25%.

Some good news with the dust settling, downward movement in interest rates of all classes ensued but especially the 6 months and three-year fixed rates.

• For the first time in 3yrs, we have a 3yr fixed rate 4.95% offered by most banks

For those seeking absolute certainty for 3yrs, the 3yr rate does look appealing but are we all on red or can we have the best of both worlds?

• i.e. certainty and take advantage of potentially lower ensuing rates in the short to medium term whilst have at least some long-term certainty

Probably yes - but for formal advice specific to your circumstances or to have a chat about uncertainty, get in contact with ourteam@hawkeyefinance.co.nz and give yourself certainty with reassurance in the quality of specific advice.

Alfonso Jaques, Director, Hawkeye Finance

Fine Print

Disclaimer: This article is not financial advice. It is informational only and should not be considered as formal financial or legal advice. For advice based on your unique circumstances please speak to us directly.