The OCR has just dropped to 4.25%

The Reserve Bank of New Zealand announced the latest OCR rate at 4.25% as the last update this year.  

This marks the closing chapter on a year of monetary policy adjustments aimed at curbing inflation. 

Market expectations largely align with this update, having predicted a high chance of a 4.25% OCR. 

Many New Zealanders have been eagerly awaiting this decision, particularly those looking to refix their mortgage rates or refinance to potentially secure lower interest payments. The next OCR update will be in February 2025. 

If you’ve been holding off on a financial move, now is the right time to act. Make sure you work with a qualified financial adviser to crunch the numbers and create a tailored plan for your specific situation.  

Here are some suggestions to consider: 

• Review your current interest rates: Compare your existing mortgage rate with the new market landscape. A financial adviser can help determine if refinancing could save you money. 

• Consider your financial goals: Are you looking to save on monthly payments? Shorten your loan term? Or looking to use your existing equity to purchase a new home? A financial adviser can tailor a strategy to meet your specific needs. 

• Understand the risks and benefits: While lower interest rates can be attractive, there might be associated fees or penalties with refinancing. A financial adviser can guide you through the entire process. 

We previously explored the potential impacts of an OCR reduction in our October blog post here.

Don’t miss out on this opportunity to potentially save on your mortgage and secure a more stable financial future.  

Book a free consultation with our financial adviser today! Together, we can navigate the changing financial landscape and help you make informed decisions. 

Talk to our Financial Adviser today

What is OCR?

The Official Cash Rate (OCR) is the interest rate set by the Reserve Bank of New Zealand (RBNZ). It serves as a benchmark for interest rates in the country, influencing the cost of borrowing and saving. When the OCR is lowered, it generally leads to lower interest rates on loans and mortgages, while higher OCRs can result in higher interest rates.

The RBNZ adjusts the OCR to manage inflation and maintain economic stability. By influencing interest rates, the OCR affects various aspects of the economy, including consumer spending, investment, and business activity.

Visit the Reserve Bank of New Zealand’s website for more information about OCR.