What the latest OCR rate cut means for SMEs in 2025

On 19 February, the Reserve Bank cut the Official Cash Rate (OCR) to 3.75%, lowering it by 0.5 percentage points, a move that will help stimulate economic growth as inflation eases. While further cuts may follow, nothing is certain.

What does this mean for your business?

• Lower borrowing costs – Interest rates on loans and overdrafts may fall, making refinancing or new investments more affordable.

• Stronger consumer spending – With financial pressure easing, customers may be more willing to spend: good news for retail and service-based businesses.

• More financial flexibility – Now is a good time to review loan structures, prepare for potential rate changes, and explore investment opportunities that could support business growth.

Simply put, the OCR cut is a positive shift for many SMEs—but smart financial planning is important. Need personalised advice? Get in touch — we’re here to help