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 a primary tool for managing New Zealand's inflation. It's the interest rate at which banks borrow, directly influencing your mortgage and savings rates.
Raising the OCR makes borrowing more expensive, which helps to cool the economy and control prices but can risk a recession. Homeowners can manage rate volatility through interest rate averaging—splitting a mortgage into portions with different fixed-term lengths for greater certainty.
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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