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, is the primary tool for managing inflation. It directly influences the interest rates banks offer on mortgages and savings accounts.
Raising the OCR cools the economy to fight inflation but can risk a recession. Lowering it stimulates spending but can inflate asset prices like property.
To manage risk from rate changes, homeowners can use interest rate averaging by splitting their mortgage into different 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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