This graph shows the OCR (official cash rate) which is the Reserve Bank’s interest rate, and they use it to control inflation.

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What is the OCR (official cash rate) in NZ right now?

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Data type: Official Cash Rate 
Source: Reserve Bank of New Zealand
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Put your questions and thoughts in the comments section (below).

What is the OCR?

The OCR stands for the Official Cash Rate.
It’s the Reserve Bank’s interest rate, and they use it to control inflation.

What makes the OCR go up and down?

If the Reserve Bank wants to decrease inflation, they often need to slow the economy down. To do this, they increase the OCR. 
This will put pressure on interest rates to increase. 
Higher interest rates mean that people who put money into term deposits will be encouraged to save (rather than spend).
On the other hand, people who borrow money will need to pay more for their debt. This means they’ve got less money to spend on other things. 
People are also less likely to borrow money since borrowing is more expensive.
That decrease in spending helps to stop how quickly prices rise (inflation).
If inflation is too low, the Reserve Bank will do the opposite. They will decrease the OCR to get people spending.

Where does the data come from?

The data comes from the Reserve Bank of New Zealand.

How does the OCR impact house prices?

If the OCR rises, then mortgage interest rates will increase too.
This makes borrowing money to buy a house more expensive. This means people are less likely to buy an extra investment property or holiday home. They’re also less likely to borrow that extra bit to get the house they want.
This restrains spending on housing, as people are a bit more careful with their money.
This helps dampen house prices.
On the other hand, if the OCR is really low, then interest rates will decrease. This has the opposite effect. 
Borrowing is cheap, so people are encouraged to make an aspirational purchase (buying a holiday home or investment).
They’re also more likely to spend a bit more on a home for themselves.
This creates heat in the housing market, pushing up house prices.

Can I download the data?

Yes. While we don’t have a feature that lets you download the data on our website, you can download the data directly from <a href="https://www.rbnz.govt.nz/monetary-policy/monetary-policy-decisions#ocrchart">the Reserve Bank</a>.

Can I reference the data in my article or research project?

Yes, you can reference the data if you are writing a report, article, or research project. 
If you do, it’s best to reference that the data comes from the Reserve Bank.
That way, if people want to check the updated data, they know where to find it.

What is the OCR (official cash rate) in NZ right now?