Banks were quick to cut floating home loan rates after the Reserve Bank cut interest rates and signalled another fall is likely. But good news for borrowers comes on the back of a downbeat outlook for the economy. The Reserve Bank warned unemployment is expected to increase, export prices will recover only gradually and said Auckland house prices are "unsustainable". In a widely expected decision, the Wellington-based central bank lowered the official cash rate (OCR) from 3 per cent to 2.75 per cent on Thursday. Kiwibank cut its floating rate within minutes of the Reserve Bank move, from 6.15 per cent to 5.90 per ... (full story)