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 Reserve Bank of New Zealand's main tool for managing inflation. It's the interest rate at which retail banks borrow money, directly influencing mortgage and savings rates for everyday Kiwis.
A higher OCR aims to curb spending and lower inflation, while a lower OCR stimulates the economy. These changes can have significant side effects, such as recession or asset bubbles. Homeowners can manage risk by using interest rate averaging—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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