Why the OCR Didn't Budge - and What It Means for You

The Reserve Bank kept the Official Cash Rate (OCR) steady at 3.25% this month – no surprises there. But that doesn’t mean nothing’s changing. Floating mortgage rates remain low, and banks are still trimming fixed rates, offering deals we haven’t seen in years.

So what’s going on?

Why the OCR Stays Put (For Now)

Inflation is finally behaving – but it’s not quite where the Reserve Bank wants it. The OCR is one of the main tools the RBNZ uses to tame inflation: when it's high, they lift the OCR to slow down spending; when things cool, they lower it to boost confidence and growth.

Right now, inflation is heading in the right direction, but it's not quite at the 1–3% target band they’re aiming for. That’s why the Bank is holding steady – they’re watching, not rushing.

Will the OCR Drop in August?

Economists say yes. In fact, most are betting on another 25-point cut in August, with the OCR expected to fall to 3.00%. And there could be more to come – by the end of 2025, we may see it drop as low as 2.75% or even 2.50% if the economy continues to settle.

What Does That Mean for You?

If you’re a homeowner, buyer or investor, this is your window. Right now, we’re securing fixed rates as low as 4.95% for a 1-year term, and 4.29% for eligible first-home buyers. That’s real savings – potentially hundreds off your monthly repayments.

Julius Capilitan says:

"Clients who fixed for 6–12 months earlier this year are now returning to us, ready to refix at even better rates. It’s a sweet spot in the cycle – short-term wins with long-term benefits."

What You Should Do Next

Every borrower’s position is different, especially when it comes to deposit size (LVR, or Loan-to-Value Ratio, plays a big role). If you’re sitting above 80% LVR, don’t assume you're stuck – many of our clients are refinancing to better rates even with smaller deposits.

And if you’re still renting or waiting for the “perfect” moment to buy, remember: trying to time the market perfectly often means missing the best parts of it. Spring is coming – and the buyers who act now will be the ones ahead of the curve when listings rise and competition heats up.

Let’s Make Your Move the Mortgage Win of the Century.