Reserve Bank keeps a steady hand on the OCR

Written By Kim Manunui

With the newly appointed Reserve Bank Governor Anna Breman now settled into her role for the next five years and in tune with the heartbeat of the country, the Feb 18th decision to hold the OCR at 2.25% ushers in a period of stability with mortgage rates remaining largely unchanged since the announcement.

A year ago we were all about OCR and interest rate easing as inflation abated and with that pretty much done and heading toward the 2% target midpoint between 1 – 3%, we’re back and on track for a long period of stable interest rates and steady growth with green shoots appearing across multiple sectors.

As pockets are filled, confidence builds and demand increases bringing employment with it, we’re on a steady upward trajectory through 26 into 27 and beyond where along the way we reach a tipping point where we hit top gear and we’re flying again, standard issue economic cycle.

Click here for more in depth on the Monetary Policy Statement >>> Monetary Policy Statement February 2026 - Reserve Bank of New Zealand - Te Pūtea Matua

With inflation the key driver for where central banks set cash rates, the RBNZ Monetary Policy Committee have decided starting in 2027 to shift their inflation rate reporting from quarterly to monthly and to meet 8 times a year to review cash rates instead of the current 7. This has the effect of being more nimble and able to act quicker while still playing the long game.

Click here for future OCR announcement dates.

The word on the street going forward is OCR remains pretty much as is with minor tweaks if anything and we may see an ever so small increase in about Sept with minimal effect but otherwise we’re in for a long stretch of stable and favourable interest rates now sitting about where they typically are with all being well in the world with geopolitical events having little effect on us.

So buckle in NZ, we’re in for a long-sustained period of steady growth and prosperity, we finally made it to the light at the end of the tunnel and it’s all clear from here.

For more on the above, click on the link below.

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Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

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