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) is the interest rate set by the Reserve Bank (RBNZ) to control inflation. It directly influences the cost of borrowing for retail banks, which then affects consumer mortgage, loan, and savings rates.
Raising the OCR helps curb spending and lower inflation but can risk a recession. Lowering it stimulates the economy but can fuel asset bubbles. For homeowners, a strategy like interest rate averaging—splitting a mortgage into multiple fixed-term portions—can help manage risk from rate changes.
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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