Kiwis Expect Higher Interest Rates as OCR Review Looms

New Zealanders are bracing themselves for higher interest rates, with a survey finding that 57% of respondents expect borrowing costs to rise over the coming year.

This is up from net 48% in the previous quarter and the highest since April 2023, according to ASB's latest housing confidence survey.

ASB senior economist Jane Turner expects the Official Cash Rate (OCR) to hit 3.25% by the end of the year, a total lift of 100 basis points.

The Reserve Bank is set to review the OCR on Wednesday, with ASB tipping a second straight rise, and Turner noting that the risks sit with a slower pace of hikes.