Falling interest rates could give consumers a much-needed kick of confidence

BNZ and Westpac are following ANZ in cutting mortgage rates, following the recent drop in the cost of wholesale funding.

That's despite a possible rise in the Official Cash Rate next Wednesday.

NZIER Principal Economist Christina Leung says it's a positive sign for consumers anxious about rising interest rates and living costs.

She says that should help address the record low consumer confidence levels recorded in recent months.