Tony Alexander: What the OCR hike means for mortgage rates and house prices
The Reserve Bank of New Zealand has raised the Official Cash Rate by 0.25% to 2.5%, signaling the start of a monetary policy tightening cycle. While floating mortgage rates are expected to rise immediately, fixed rates may see only minor adjustments as markets had already priced in the change.
Share twitter Share linkedin Share link These three letters can dictate how much you pay on your mortgage. Opes Partners economist Ed McKnight explains the Official Cash Rate for OneRoof. Video / OneRoof ANALYSIS: It was a 50:50 call but in the end the Reserve Bank made the decision today to get the upward leg of the monetary policy cycle started with a 0.25% rise in the official cash rate to 2.5%. Borrowers on floating mortgage rates should expect the full 0.25% to be passed through to those rates shortly, but for fixed mortgage rates the impact will be a lot less.
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