Borrowers get the dividend from the Government’s careful spending

Careful spending is working to ease the cost of living,” says ACT Leader David Seymour in response to the Reserve Bank’s decision to hold the Official Cash Rate at 2.25%.

“A hold in the cash rate is good news. It means people will refix at lower rates than they would have if the Reserve Bank had raised its rates.

“Even if you’ve got a shorter-term loan, your next fix should be lower than it otherwise would, because the Reserve Bank hasn't put up rates the way some banks thought they would.

“A household with a $500,000 mortgage is now paying around $200 a week less than they would have under Labour’s interest rate peak.

“Renters win too, as landlords pass on savings. It’s no coincidence that rents have stabilised for the first time in years.

“Today’s OCR decision is a reminder of why the Government need to keep reining in its spending. When the Government borrows, it competes with mortgagees, driving up interest rates.

“When the government saves money, inflation comes down, and so do interest rates.

“That’s why tomorrow’s Budget makes tough choices. Just as households make sacrifices in their budgets to fund new spending, the Government is doing the same.

“ACT has always called for a smaller, more affordable government. Budget 2026 is finally delivering.”