Kerre Woodham: OCR cuts have not restored the most important thing - confidence
Hopes for an economic recovery have been given a significant boost by yesterday's decision from the Reserve Bank to frontload cuts to the official cash rate. The RBNZ delivered a 50 basis point cut to the OCR and indicated it was prepared to cut again in November if required. After that, they're kind of starting to run out of ammo.
Dropping mortgage interest rates though is not the panacea to cure all economic ills. Mortgage holders account for around a third of households. So of all the households in New Zealand, one third are paying mortgages. Two thirds, those who rent and those who've…
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