The Reserve Bank has announced that the Official Cash Rate will remain at 2.25%.
With recent events in the Middle East, we’ve seen rising fuel prices, disruption to supply chains, and more volatility globally. The Reserve Bank is now expecting inflation to rise again (forecast peak around 4.2% mid 2026) while economic growth slows.
In response, they’ve taken a “wait and see” approach – balancing the risk of increasing rates too early and hurting the recovery, versus moving too late and letting inflation stick.
So while there is no change to the OCR and the feeling of uncertainty is present, there are still things we can control – and that’s where we can help!
What to focus on right now?
Right now, the focus isn’t trying to pick where the rates go next, it’s about setting yourself up for stability and flexibility.
We’re seeing a lot of clients:
- Leaning back towards 2 to 4 year fixed term rates for certainty
- Reviewing their loan structure to reduce risk and improve flexibility
- Making sure their lending can handle higher cost without putting pressure on day to day cashflow
- Getting ahead of upcoming refixes, rather than leaving decisions to last minute
- Reviewing whether extending loan terms could ease pressure
- Consider interest only options or split bank strategies
- Using offset or revolving credit facilities to reduce interest whilst still keeping access to funds
👉 What’s right for you is entirely dependent on your situation. This isn’t personalised advice, but if you’re feeling unsure, worried, or want clarity – Reach out and we can talk through your options.
It’s worth mentioning that property values are quietly ticking upward.
The latest Cotality Home Value Index shows national property values increased 0.2% in March, matching the same rise seen in February. The national median now sits at $802,599.
If you’d like a more indepth overview of the property market right now, read our latest insights HERE
👉 All in all, if you’re feeling uneasy, have a refix coming up, or wanting a bit more clarity around your options – Give us a call or contact us HERE
Let’s check in and make sure everything is set up to give you a little more confidence as we navigate what’s ahead.
