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 (RBNZ), is the primary tool for managing New Zealand's inflation. It's the interest rate at which the RBNZ lends to commercial banks, directly influencing your mortgage and savings rates.
Raising the OCR helps lower inflation by increasing borrowing costs but can slow the economy. Conversely, lowering it stimulates spending but may fuel asset bubbles. Homeowners can mitigate risk by using interest rate averaging—splitting their mortgage into multiple fixed-term portions.
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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