Ocr

National has described the "shock" 50 basis point increase to the Official Cash Rate (OCR) as a "punch in the guts" for Kiwis, while the Greens are ...

The Monetary Policy Committee today increased the Official Cash Rate (OCR) by 50 basis points, from 4.75 percent to 5.25 percent.

The Committee agreed that the OCR needs to be at a level that will reduce inflation and inflation expectations to within the target range over the medium term. This slowdown in spending growth is necessary to return inflation to target over the medium-term. The demand on resources is expected to add to inflation pressure by more than assumed in the February Monetary Policy Statement. Global growth is expected to be below average, contributing to lower demand for New Zealand’s key commodity exports. The recent severe weather events in the North Island have led to higher prices for some goods and services. However, demand continues to significantly outpace the economy’s supply capacity, thereby maintaining pressure on annual inflation.

Reserve Bank lifts Official Cash Rate 50 basis points to 5.25% saying severe weather events have led to higher prices for some goods & services.

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A day after Australia's central bank held rates steady at 3.6% the central bank made its 11th consecutive OCR rise. The rise was above the expectations of most ...

Around half of New Zealand mortgage holders will be re-fixing their mortgages in the next six months, meaning many will see their interest rates double from 3 per cent or less to more than 6 per cent. Instead, they’ve been given another punch in the guts," finance spokeswoman Nicola Willis said after the announcement. Some will be unable to do that. “This is the eleventh consecutive hike in the Official Cash Rate. That means the central bank and Orr will likely give less away in terms of the overall economic outlook. “Members agreed that the sooner supply and demand were better matched in the economy, the lower the overall cost of reducing inflation.”

Today's increase takes the OCR to its highest level since December 2008 and is the 11th successive rate hike for the Reserve Bank.

The Governor has often said ‘monetary policy needs friends.’" Instead, they’ve been given another punch in the guts." In contrast, New Zealand’s has been increased to 5.25. If we taxed wealth, this money could then be used to support people to help make ends meet." "It reflects RBNZ's continued concerns about inflation. While an increase was expected, most economists had tipped a 25 basis point rise.

The Reserve Bank has lifted the Official Cash Rate 25 basis points, to five percent. It's the 11th straight rise since November 2021, putting the OCR at it.

“However, wholesale interest rates have fallen significantly since the February Statement, and this could put downward pressure on lending rates,” it said. The Monetary Policy Statement today made scant mention of the employment impacts of these changes.” Around half of New Zealand mortgage holders will be re-fixing their mortgages in the next six months, meaning many will see their interest rates double from 3 per cent or less to more than 6 per cent.” ”Some Reserve Banks such as the Reserve Bank of Australia are holding their interest rates. “Sadly, for too many Kiwis this will be the punch that sends them off the edge, into mortgage arrears, unwanted house sales and financial distress.” The New Zealand dollar rallied sharply on the higher-than-expected hike. ”No one saw this coming,” Imre Speizer, senior markets strategist at Westpac, said. ”The last NZIER Quarterly Survey of Business Opinion showed that capacity constraints were easing. The RBNZ effectively shrugged off global banking woes. The recent severe weather events in the North Island have led to higher prices for some goods and services, the RBNZ said. Instead, they’ve been given another punch in the guts. ”We reject that approach and the idea that some of the most vulnerable must pay the price for inflation control.”

A day after Australia's central bank held rates steady at 3.6% the central bank made its 11th consecutive OCR rise. The rise was above the expectations of most ...

Around half of New Zealand mortgage holders will be re-fixing their mortgages in the next six months, meaning many will see their interest rates double from 3 per cent or less to more than 6 per cent. Instead, they’ve been given another punch in the guts," finance spokeswoman Nicola Willis said after the announcement. Some will be unable to do that. “This is the eleventh consecutive hike in the Official Cash Rate. That means the central bank and Orr will likely give less away in terms of the overall economic outlook. “Members agreed that the sooner supply and demand were better matched in the economy, the lower the overall cost of reducing inflation.”

News the Reserve Bank was increasing the official cash rate to 5.25% came as a surprise to many economists. Here's what it might mean.

“Realistically, the Reserve Bank doing too much could well see that mortgage pressure spread, putting further downwards pressure on household spending. [Worldline data showed spending up 8.3% year-on-year in March.](https://www.stuff.co.nz/business/131700536/inflation-drives-consumer-spending-hits-record-high-in-march) “There’s no cooling of the jets here. If you follow that line of thinking to its logical end, it implies if they haven’t already done too much then they probably will.” [high-profile job losses at The Warehouse, Xero, and Today FM](https://www.stuff.co.nz/business/131676886/march-was-the-month-of-redundancies--but-is-it-about-to-get-worse), job numbers had lifted by 22,000 between the end of 2022 and February, when seasonal effects were discounted. If they don’t do enough, and lose their inflation targeting credibility, rates will have to go higher for longer with much greater real economic costs. In an update, research firm Jarden said the Reserve Bank had taken a “myopic” approach to achieving its inflation target, with little consideration of the delay before monetary policy changes were felt in the economy. “We cannot fathom that the Reserve Bank would be able to hit pause on interest rates within the next two or three months after this increase. If spending falls, business activity pulls back, and you could see a recession go deeper and/or stick around for longer – with economic activity being subdued more for longer. It could but I’m not seeing the early signs as immediately as some people are highlighting.” "I do think there’s a big risk with every move from here that they’re doing too much. Brad Olsen, Infometrics chief economist, said there were clear risks that the Reserve Bank would go too far and engineer a deep recession. “They just clearly disagreed with all economists and financial markets today.

The National Party leader Christopher Luxon says another hike of interest rates will bring pain and suffering for New Zealanders.

The Reserve Bank (RBNZ) says the economy is slowing and the labour market easing but inflation remains high. Economists and financial markets were ...

It's the 11th straight increase in the OCR. "The Committee agreed the OCR needs to increase, as previously indicated, to return inflation to the 1-3 percent ...

They are now less concerned with labour shortages and more with sales. However, demand continues to significantly outpace the economy’s supply capacity, thereby maintaining pressure on annual inflation." [mortgages](https://www.1news.co.nz/2023/03/27/60-of-kiwi-households-face-refinancing-mortgage-at-higher-rates/) are likely to feel today's shift the most. [Read more: 'Don't ask, won't get' - how to get lower mortgage rates](https://www.1news.co.nz/2023/03/03/dont-ask-wont-get-how-to-get-lower-mortgage-rates/) "The Committee agreed the OCR needs to increase, as previously indicated, to return inflation to the 1-3 percent target range over the medium term," the bank said in a statement. [sits at 7.2%](https://www.1news.co.nz/2023/01/25/home-and-food-costs-rise-but-annual-inflation-stays-at-72/), although many were tipping a hike to 5%.

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A decision by the Reserve Bank to lift the rate to 5 percent is regarded as a given by financial markets.

A claim has come that the Official Cash Rate increase will continue to hit pockets and stretch incomes The Reserve Bank has shocked many by hiking the OCR.

The New Zealand sharemarket tumbled and then recovered from the shock of an unforgiving Reserve Bank defying predictions and increasing the Official Cash ...

The central bank hiked the Official Cash Rate 50 basis points on Wednesday to 5.25 percent, the highest it has been since 2008's global financial crisis.

The unexpected 50 basis points hike to the Official Cash Rate could kick some tech start ups when they're already down.