Video: Big OCR cut more likely as mortgage approvals fall

It looks like the Reserve Bank may cut the OCR by another big margin on January 29. Westpac said they expect a 100 bp drop, and another 15 bps through to mid 2009. This would bring the OCR down to 2.5%. Mortgage approval data is out. Both the number of approvals and the value of approvals are low, even for this time of year. The Dow is down 3% in late afternoon trade. The NZ$ slipped into the 53 USc range last night. Oil fell to US$36.30 per barrel, but prices at NZ pumps rose 5 cents because of the low Kiwi dollar.