The Reserve Bank has kept the Official Cash Rate (OCR) steady at 3.25% – but they have indicated that further rate cuts might still be on the horizon later in the year. This may mean we are nearing the bottom of this current rate cutting cycle.
What does that mean for you?
If you’re on a fixed-rate mortgage, or managing personal loan or credit card debt, it could still be worth exploring refinancing options. Even if rates haven’t moved yet, lenders may look to sharpen their offers in anticipation of further changes.
Our advisers can help you weigh up your options and make confident financial decisions.
Consider locking in peace of mind:
With further rate cuts potentially months away, now could be a strategic time to secure a longer-term fixed rate. Waiting for further cuts may pay off, but locking in now could give you more certainty around your mortgage repayments.
Want to see the numbers?
Check out our Loan Repayment calculator to explore what a potential new rate could mean for you.
Got equity? Use it wisely.
If you’ve been considering purchasing an investment property, this stable period could be your chance to act. Listings are up, borrowing conditions may ease soon, and your home equity could stretch further than you think. Explore your investment property options – before the market shifts again.
If you’re saving:
First home buyers can take advantage of higher KiwiSaver contributions from the latest Budget, which could help you reach your deposit goal sooner. Not sure how it affects you? Our KiwiSaver investment advisers are here to guide you.
With interest rates remaining unchanged, savings accounts might look attractive, but now could also be the time to explore shares, bonds, or other investments to grow your money over the long term.
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.
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