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 primary tool the Reserve Bank of New Zealand uses to manage inflation. It's the interest rate at which retail banks borrow money, directly influencing mortgage and savings rates for consumers.
A higher OCR aims to cool the economy by increasing borrowing costs, but it can risk a recession. A lower OCR stimulates spending but can fuel asset bubbles. Homeowners can manage this volatility through interest rate averaging by splitting their mortgage into multiple fixed-term portions.
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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