Reserve Bank cuts OCR to 3 per cent

The Reserve Bank cut the Official Cash Rate by 25 basis points to 3 per cent this morning and banks quickly followed suit, cutting their own floating mortgage rates. New Zealand's biggest bank, the ANZ, cut its rates by 0.25 per cent to 6.24 per cent for its floating rate and 6.35 per cent for its flexible home loans. The new rates will take effect for new customers from Monday July 27 and for existing customers from August 10.