Why the official cash rate is important

What will happen?

At 2pm on Wednesday, the Reserve Bank will publish its review of the OCR, as well as its final monetary policy statement of the year.

Whether commercial banks raise their interest rates in response isn’t a given because banks get their money from a variety of places, including overseas markets.

They are also competing amongst themselves for people to bank with them, so want to charge attractive rates.

Read more: https://www.stuff.co.nz/national/politics/130551043/why-the-official-cash-rate-is-important?cid=app-

Source: Stuff.co.nz