Banks rush to slash mortgage rates after OCR cut

Banks have rushed to slash their mortgage rates after the central bank cut the Official Cash Rate for the first time in more than four years. The Reserve Bank Governor, Graeme Wheeler, says the prospect of ongoing weak dairy prices meant a rate cut, to 3.25%, was the right thing to do and warns another may be needed. Economics Correspondent Patrick O'Meara says the Reserve Banks latest figures show that in April home mortgages were worth about $204 billion, with a quarter of those on floating rates and a slightly higher number fixed for six months.