A third of OCR hike hits mortgage holders within a month

Mon, 30 Aug 2021

Just over a third of an official cash rate (OCR) hike will hit mortgage holders within a month of the hike on average and, after six months, home loan borrowers will have felt about 80% of the hike, according to a paper published by the Reserve Bank of New Zealand (RBNZ)."The pass-through from changes in monetary policy increases over time, with the peak impact on mortgage rates about six months after the change in the OCR," RBNZ said.But a rise or fall in the OCR doesn't change all mortgage rates to the same extent, with floating...

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