Reserve Bank lifts interest rate

21:11, Apr 23 2014

Homeowners will need to dig deeper into their pockets after the Reserve Bank lifted the official cash rate this morning.

The central bank raised its official cash rate (OCR) - on which floating and very short term bank mortgage rates are based - to 3 per cent this morning.

The move up from 2.75 per cent was widely expected by economists as the economy continues to gather strength.

Lower than expected inflation data released earlier this week has prompted debate about when the next Reserve Bank hike will happen. Bets had been on a June move but some economists now say the bank can pause until July.