OCR & interest rates

Gerald Mullaney

15 May 2025

Pay day due for the observant investor

The OCR is due for another review on the 28 May 2025 and it is of the view it will be reduced by 00.25 basis points, down to 3.25%

The RBNZ indicated in Jan 2025 that the OCR range is between 2.50% and 3.50% range.

That would indicate that RBANK NZ is treading very slowing to guage what OCR will trigger econonic growth but not causing inflation.

Currently the OCR is in the top of the range, that range being 2.50% to 3.50% on the 28 May 2025 the OCR is forecast to be 3.25% one has to wait and see if the OCR does reach a low 2.50% OCR or lower maybe reached. That could mean some rates going to as low as 3.00 to 4.50% we are already in may 2025 seeing one to two years rates at 4.99% which is 5.00% in reality.

Banks are advertising 4.99% for one to two years as at 15 May 2025 this may not be a great rate in three to four months time when they could be in the rage 3.50 to 3.99% thereabouts.

Holding out will bring about a great payday keep alert.