Nick Tuffley: ASB Chief Economist on the Reserve Bank's decision to hold the OCR at 2.25%

The SME Stream · May 28, 2026 · 3m

ASB chief economist Nick Tuffley says the window for low mortgage rates has closed, with multiple Official Cash Rate hikes expected later this year following the Reserve Bank’s decision to hold the rate at 2.25% yesterday.

The RBNZ's Monetary Policy Statement said Official Cash Rate (OCR) increases would likely be required this year, predicting inflation would peak at 4.3% in the September quarter before returning to 2% mid-2027.

Tuffley told Ryan Bridge people had been fixing their mortgages at higher interest rates since it became clear that there would be no further cuts to the OCR…