OCR Rises to 2.75%

The Reserve Bank today increased the OCR by 25 basis points to 2.75 percent, the first raise since July 2010.

Reserve Bank Governor Graeme Wheeler seemed to go to some lengths to explain the reasoning for the raise in his statement which included: “New Zealand’s economic expansion has considerable momentum, and growth is becoming more broad-based.”

What will happen in terms of rate rises from here was covered off with: “The speed and extent to which the OCR will be raised will depend on economic data and our continuing assessment of emerging inflationary pressures”.

ANZ has raised home loan Floating and Revolving Credit rates immediately to 5.99% and 6.10% respectively, to apply for existing customers from 1 April 2014.