OCR changes to impact many

For most of us with mortgages, the situation lately has been a welcoming change as the Reserve Bank recently lowered the official cash rate with the resulting flow on in mortgage rate drops.

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Recent changes to OCR (Official Cash Rate) will affect many.

For most of us with mortgages, the situation lately has been a welcoming change as the Reserve Bank recently lowered the official cash rate with the resulting flow on in mortgage rate drops.

Those with term deposit and investments will not be so happy as investment rates drop.

The other big group to be affected by recent change, are farmers with the fall in dairy prices continuing to trend downwards over the recent months.

Fonterra has just released it's new milk price forecast of $3.85 per kilogram of milk solids. This is a huge drop from initial forecasts of $5.25 per kg.

As there is often significant debt involved within the dairy industry, this drop in price could see farmers struggling with cash flow, cutting down on additional farm costs e.g. fertiliser, food supplements and /or reduce herd sizes.

If you are a farmer needing any assistance in revising your budgets, please contact our farming team.

Melanie Wilkinson