Home Loan Rate Report: Sticky inflation to delay rate cuts

  • Central banks around the world have monetary policy settings restrictive to reduce inflation.  New Zealand is no exception
  • The Official Cash Rate (OCR) is 5.5% (and has been at this level since May 2023), the highest level since 2008.  The OCR is a key determinant of mortgage interest rates and so it’s no surprise that mortgage rates are also sitting around recent highs
  • But with it becoming clearer that the next move in the OCR will be lower, the question on everyone’s mind is when will that be reflected in home loan rates?

Contact us

Chris Tennent-Brown

ASB Wealth Senior Economist

Chris has worked as an economist for ASB and Commonwealth Bank of Australia in Sydney since 2005. His work has involved monitoring and forecasting trends in the New Zealand economy, with a focus on drawing implications for financial markets and investments. Chris is passionate about savings issues, and much of his current work is focussed on broadening peoples understanding of investments. Chris obtained a Bachelor of Commerce at Auckland University, majoring in Economics, and prior to joining ASB worked in the funds management industry for Bankers Trust and BT Funds Management. With over 20 years' experience in finance, Chris has also spent several years farming, and was a New Zealand representative cyclist. When not at work, Chris likes to travel, cycle, and spend time with his family and numerous pets.

Other reports