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 inflation in New Zealand. It's the interest rate at which the RBNZ lends to commercial banks, directly influencing the mortgage and savings rates offered to consumers.
When the OCR rises, borrowing becomes more expensive, which slows spending and curbs inflation but can risk a recession. Homeowners can manage this volatility through interest rate averaging—splitting their mortgage into parts 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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