I know enough about the OCR to know that if effected the fixed rate on my mortgage.

My rate was due for renewal in the middle of the recession, so I kept an eye on the OCR as I knew if the OCR dropped, the fixed rate would likely drop.

I managed to lock my rate for three years, just before they started to rise again ;o)

I now understand why you are in so much debt. I don't mean to be rude but you sound like a 12 yr old.

Being honest, yes I know what the OCR is, what it's for and what the impacts of changes in it are. I also have a pretty good grasp of foreign exchange. *eyeroll*

Tomorrow’s announcement should be interesting because they might give an indication about their plans for the June announcement – which I'm shorting on ipredict at the moment https://www.ipredict.co.nz/app.php?do=contract_detail&contract=OCR.INCR.JUL10

Yes I did know what the OCR was prior to this post. Although I have no interest accruing debt I have a large amount of money in interest earning accounts, and when the OCR plummeted during the recession so did my interest rate, hence less interest on my investments. Now I expect it to slowly rise until I use my savings to buy a house next year which will mean a higher interest rate on my mortgage. Not the ideal way to do it!

Hi Greer, I'm like you and don't have a mortgage, but the OCR does affect me, as I have some savings with RaboPlus, and their on-call interest rates do seem to move in line with movements in the OCR. I miss the days when the OCR was around 8%, as my savings were earning brilliant interest! Also, for those who're employed by small businesses, if those businesses struggle to service debt because of an increase in the OCR, you could end up without a job. And you've already mentioned the exchange rate and people with (especially floating) mortgages.

Oh dear. Oh my, oh dear.

I prefer cartoons, but this blog is pretty good too.

Thanks for the info Greer. I had no idea what the OCR was before I read your post! I am like you - I assume it has no relevance to me as I have no mortgage. But still, thanks!

LB#2: don't be so arrogant. Not everyone has an in depth economic knowledge, just like I am sure there are some things you don't know anything about. I think it needs to be told in a simpler language because mostpeople see OCR and see stars and turn away. Basically OCR rise= a rise in the interest you pay for loans/mortgages/credit cards, but also a rise in interest gained on savings. So basically bad if you have debt, goods if you have savings.

Yes I knew what it was before this post. They rise it do slow down inflation and lower it to increase borrowing and spending essentially.

I follow the business announcements daily and keep up to date on property, sharemarkets, fixed interest markets, forex, commodities.

If you don't know what to do with your money. Someone else does and they will most likely rip you off. Good work on getting financially educated and increasing your financial IQ.

The OCR is a very blunt and often ineffectual way of trying to put brakes on or take the brakes off parts of the economy. In times gone by it has been used to try and stop people incurring debt, to encurage debt, to lift the economy, to slow the economy, to halt inflation, to steady the currency, to reduce our currency.

In reality it doesnt actually work that well. EG japan has had an OCR of close to zero for nearly 20 years.

FYI, were you aware that the NZ currency is one of the most highly traded currenies in the world? If you want to learn, go digging around why that is the case.

FYYI, Our PM made his fortune fiddling around with currency trading, so the OCR is something very close to his heart. Try and understand "who" in the economy benefits from any change (up or down)