Buying guide
What is the Official Cash Rate (OCR)?
These three little letters are kind of a big deal
AI summary
The Official Cash Rate (OCR), set by the Reserve Bank of New Zealand (RBNZ), is the main tool used to control inflation. It's the interest rate at which retail banks borrow money, directly influencing consumer mortgage and savings rates.
A higher OCR aims to cool the economy by making borrowing more expensive, while a lower OCR stimulates spending. To manage risk from rate changes, homeowners can use interest rate averaging—splitting their mortgage into portions with different fixed-term lengths.
What is the OCR?
First, what exactly is the Reserve Bank?
What is the OCR?
Jeanette Thomas explains the OCR
The OCR is a tool for controlling inflation
The OCR influences the supply of money in the economy.
The problem with the OCR
All debt is affected by the OCR.
How mortgage holders can protect themselves against OCR increases
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