Official Cash Rate expected to get biggest ever hike tomorrow

November 22, 2022

The squeeze on homeowners is set to continue tomorrow, with the Reserve Bank expected to hike the Official Cash Rate by the biggest margin ever.

Economists are predicting that the RBNZ will introduce a 75-basis point rise in the Official Cash Rate tomorrow to 4.25%.

This would be the single largest hike in the OCR's 23-year history as a monetary policy tool.

This comes after five recent double-hikes in the ongoing battle against inflation.

File image of $50 and $100 notes.

If this happens, experts predict home interest rates, which have been around 6% recently, could rise to 7% or 8% next year.

As RBNZ's meeting tomorrow will be it's last until late February, it's believed that it will bring down a strong hammer on inflation that will suffice for the next three months.


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