The Finance Minister is predicting the latest drop in the Official Cash Rate will bring quick relief for mortgage holders

The Reserve Bank has lowered the OCR by 50-basis points -- down from 5.25 percent -- to 4.75 percent.

It's the second time the mechanism for influencing interest rates has been cut this year, after being frozen since last May.

Minister Nicola Willis says about half of mortgage borrowing is now fixed or floating for six months or less.

She says a lot of people will soon have the chance to switch to a lower interest rate, freeing up cash which can flow into the tills of local business.