PHOTO: BusinessDesk investments editor Frances Cook spoke with Breakfast ahead of this week’s Reserve Bank OCR update. (Source: Breakfast)
The Reserve Bank to Update Official Cash Rate (OCR) on Wednesday, Following Sequential Hikes
Last OCR Update in May: Increase from 5.25% to 5.5%
The Reserve Bank has given strong indications that May’s 0.25 basis point lift was the final hike in the current cycle, projecting the OCR to remain at 5.5% until mid-next year.
Data shows 50pct of mortgages to be refixed in coming year | WATCH
Anticipating a Pause: First Potential Break in 18 Months of Rate Hikes
If the Reserve Bank refrains from raising the rate, it would mark the first pause in 18 months, after a rapid climb of nearly 5% since 2021, representing the swiftest increase in three decades.
OCR adjustments often prompt banks to raise mortgage interest rates, but according to BusinessDesk investments editor Frances Cook, “banks have already factored in much of these anticipated rate hikes and have gained enough certainty about the situation.”
SOURCE TVNZ