Reserve Bank cash rate cut February 2025

The story so far

The Reserve Bank cut the official cash rate to 3.75% in February 2025, its third consecutive reduction, which economists had widely expected.^{19, 20 Feb 2025} Governor Adrian Orr expressed optimism about the economy but warned that longer-term mortgage rates may not fall significantly by the end of the year.^{20 Feb 2025} After the decision, all major banks moved to cut their interest rates.^{19 Feb 2025} Falling rates have prompted more people to refix their home loans, increasing enquiries to banks.^{26 Feb 2025} ANZ reported higher call volumes and longer wait times at its contact centre after the official cash rate cuts and reductions to floating and fixed rates.^{26 Feb 2025}

Latest

ANZ said the cuts had led to more calls and longer waits at its contact centre.^{26 Feb 2025}

Key moments

1. 19 Feb 2025Reserve Bank cuts official cash rate to 3.75%, third consecutive reduction.
2. 19 Feb 2025All major banks move to cut their own interest rates.
3. 20 Feb 2025Governor warns longer-term mortgage rates may not fall significantly this year.
4. 26 Feb 2025Borrowers refix mortgages, increasing enquiries to banks.
5. 26 Feb 2025ANZ reports more calls and longer waits at its contact centre.

Written from the stories below; each sentence links to its sources.