"There are people, businesses, and resources sitting idle, and there is concern about an entrenched sense of hesitation.
“To put it bluntly, a lower OCR reduces the cost of borrowing and makes holding off decision-making less attractive.”
Lenders have moved quickly in response; wholesale funding costs have eased, and major banks adjusted rates within days. The practical outcome is meaningful breathing room for many households – lower monthly interest bills and improved borrowing capacity - which is starting to show up in lending and transaction activity.