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 used to manage inflation. It directly influences the interest rates banks offer on mortgages, loans, and savings accounts.
A higher OCR makes borrowing more expensive, which helps to slow spending and reduce inflation. Conversely, a lower OCR stimulates the economy. Homeowners can protect themselves from rate fluctuations by using 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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