Buying guide

OCR predictions for 2026 & 2027

What’s the Reserve Bank's next move?

Last updated: 28 November 2025 | 7 min read

AI summary

Economists from the Reserve Bank and major banks predict the Official Cash Rate (OCR) has likely bottomed out at 2.25%. The OCR is expected to remain stable through 2026 before a gradual increase begins in 2027.

For homeowners, this suggests mortgage rates are also near their lowest point. With future moves depending on economic data, many advisors suggest considering longer fixed terms or splitting your mortgage to manage risk, but always seek professional advice before making a decision.

Reserve Bank OCR predictions (August MPS)
%	2026	2027	2028
March	March	2.25	2.25	2.34	2.34	2.73	2.73
June	June	2.2	2.2	2.45	2.45	2.8	2.8
Sep	Sep	2.23	2.23	2.55	2.55	2.87	2.87
Dec	Dec	2.28	2.28	2.65	2.65	2.9	2.9

We could be at the bottom of the cycle

As always, next moves depend on the data

Bank economist OCR predictions %
Forecaster	March 2026	June 2026	September 2026	December 2026	March 2027
ANZ	ANZ	2.25	2.25	2.25	2.25	2.25	2.25	2.25	2.25	2.50	2.50
Kiwibank	Kiwibank	2.20	2.20	2.15	2.15	2.20	2.20	2.50	2.50	-	-
Westpac	Westpac	2.25	2.25	2.25	2.25	2.25	2.25	2.25	2.25	-	-
ASB	ASB	2.25	2.25	2.25	2.25	2.25	2.25	2.25	2.25	2.50	2.50
BNZ	BNZ	2.25	2.25	2.25	2.25	2,25	2,25	2.25	2.25	2.50	2.50