The OCR is the Reserve Bank's benchmark interest rate. How it influences mortgage rates in New Zealand, and why the link isn't direct.
⚠️ This entry contains figures or rules that change with government policy or RBNZ settings. Check the current position at the source link below before relying on it.
The Official Cash Rate (OCR) is the benchmark interest rate set by the Reserve Bank of New Zealand to influence borrowing costs and keep inflation within its target band.
The OCR most directly influences floating rates, which banks typically adjust within days of a change.
Fixed rates work differently. They're priced off wholesale swap rates, which reflect what markets expect the OCR to do over the term — not what it is today. This is why fixed rates often move before an OCR decision, and sometimes move in the opposite direction to it.
The Monetary Policy Committee reviews the OCR seven times a year, moving to eight from 2027.
An OCR cut does not automatically mean cheaper fixed rates. If the cut was already anticipated, it's priced in. Borrowers regularly wait for a cut only to find fixed rates unchanged or higher.
The direction can reverse. After cutting 325 basis points from a 5.50% peak between August 2024 and November 2025, the OCR was held through the first half of 2026 and then raised again in July 2026.
We deliberately don't publish the current OCR on this page — it changes seven times a year and a stale figure is worse than none. Check rbnz.govt.nz for the current rate and the next review date.
Last reviewed: 1 August 2026 · General information only, not financial advice.
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