Ray White Now 2022 - May New Zealand - Page 23

RBNZ had been expected to edge up the rate by 0.25 per cent but said its more dramatic move was intended to prevent high inflation – which is currently at its highest level for three decades - from becoming entrenched . Currently , inflation is 3 per cent ahead of target .
The bank also stuck to its previous prediction that the OCR would peak at 3.35 per cent by the end of next year .
New Zealand has been one of the most aggressive countries in raising its cash rate , using it to help calm runaway inflation , skyrocketing housing prices and supply-chain problems caused by the pandemic .
The RBNZ said it believed the new cash rate was still sufficiently low to stimulate economic activity while dampening aggressive price-setting and taking some heat from the record-breaking property sector .
As a homeowner this news means now could be a good time to consider how to handle economic headwinds . If you ’ re facing increasing mortgage payments , there are options available to help you minimise the impact of these decisions .
One option could be to consider moving to a fixed interest rate for all or a portion of your loan . Interest rates remain at historical lows even after these last four increases , but more hikes could be on the way and now could be a good time to lock in your rate .
A LOAN MARKET MORTGAGE ADVISER CAN GUIDE YOU THROUGH YOUR OPTIONS OR ASSIST WITH A MORTGAGE HEALTH CHECK TO HELP YOU WEATHER THE CURRENT STORM .
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