The latest inflation rate is giving confidence to cut interest rates.  

Stats NZ figures show the inflation rate for the year to December hasn't changed, sticking at 2.2%, well within the Reserve Bank's target band.  

Kiwibank Chief Executive Steve Jurkovich told Ryan Bridge their two-year mortgage rate is expected to come down half a percent over the next few months.  

He says it'll vary by term, but he thinks we will see rates around 5%. 

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