Official cash rate

Official Cash Rate

What is the Official Cash Rate?

The Official Cash Rate (OCR) is the interest rate set by the Reserve Bank of New Zealand to maintain price stability. It is the rate at which banks can borrow or lend money to each other overnight and is a key tool used by the Reserve Bank to control inflation.

Recent News on OCR

According to Westpac Chief Economist Kelly Eckhold, another hike to interest rates is expected as the Reserve Bank reviews the Official Cash Rate. This comes after a previous hike in May 2021, which brought the OCR to 0.5%. Eckhold has predicted a "big hike" to the OCR, stating that "50 and done" could be the Reserve Bank's approach to interest rate increases.

It is important to keep an eye on any changes to the OCR as it can affect borrowing costs, mortgage rates, and the overall economy.