The OCR* is at the highest level since mid-2015 and there is a lot of talk about where this and where home loan rates will end up in 2023.
The goal of increasing the OCR by the Reserve Bank (RBNZ) is to reduce inflation. The RBNZ went for it in November 2023 as we all know but also jaw-boned ABOUT how difficult things are in the hope of influencing the reduction of our spending habits.
Many economists were caught out by the jaw-boning and have now revised their OCR forecasts from a peak of around 5% to 5.5% - 5.75% and some believe that first there was too much easing, and now there is too much tightening.
With news changing almost daily it is near impossible to predict where rates will end up next year but commentators and economists believe that we could see the OCR maxing out mid-2023 and, potentially, interest rates falling the back end of 2023 into 2024. Watch this space and if in doubt connect with an expert mortgage adviser here or call Nigel for a no-obligation, no-cost and 100% confidential chat.
*OCR = Official Cash Rate. This is the wholesale rate at which banks can borrow money and influences the price of what we are charged to borrow money (or save money).