How Low Can We Go? OCR AND INTEREST RATES. If you’ve been living in New Zealand for the past couple of years, you’ll know we’ve been at war with the inflation beast. This has affected the cost of doing business and the cost of living. Ultimately, the effect of high inflation is businesses paying more for the inputs they need and individuals paying more for…
Browsing CategoryInterest Rates
HAS BORROWING MONEY GOT EASIER?
Has Borrowing Money Got Easier? If you’ve read our last article on the OCR and interest rates, you’ll know when the Reserve Bank reduces the OCR, the wholesale rates banks borrow money from the Central Bank falls. This can result in our registered banks reducing their short-term interest and deposit rates. POSSIBLE EFFECTS Debt to Income (DTI) rules became operational on 1 July 2024. They…