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 set by the Reserve Bank of New Zealand (RBNZ) to manage inflation. It's the interest rate at which retail banks borrow from the RBNZ, directly influencing consumer mortgage and savings rates.
Raising the OCR helps fight inflation by increasing borrowing costs, but it can risk a recession. Lowering it stimulates the economy but may fuel asset bubbles. To manage fluctuating mortgage rates, homeowners can use interest rate averaging by splitting their loan into different 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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