NZ Interest Rates Rise, But Experts Predict No Severe Repayment Shocks

The Reserve Bank of New Zealand has raised the Official Cash Rate from 2.25% to 2.75%, and it plans more hikes as it moves the rate above 3% by early 2027.

As a result, fixed mortgage rates have risen, ending ultra-cheap loans for now.

However, experts expect no severe repayment shocks for homeowners who lock in a mortgage today.

Kiwibank chief economist Jarrod Kerr said mortgage rates are 'pretty neutral' right now and won't move much higher from the early 5%s for some time.