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Nikita Trainin

Nikita Trainin

Financial Adviser

How the OCR is Affecting Your Wallet: A Guide for Everyday Kiwis

Have you ever heard of OCR? It stands for “Official Cash Rate”, and it’s a key tool that the Reserve Bank of New Zealand uses to manage the economy. The OCR affects everyone, from homeowners to savers to shoppers, and understanding how it works can help you make better financial decisions.

 

  1. Borrowing money: When the OCR is high, it becomes more expensive to borrow money for things like a mortgage, car loan, or personal loan. Conversely, when the OCR is low, it becomes cheaper to borrow money. This can impact homeowners and people making big purchases.
  2. Saving money: When the OCR is high, banks offer higher interest rates on savings accounts, which means that savers can earn more money on their savings. Conversely, when the OCR is low, banks offer lower interest rates on savings accounts, which means that savers earn less money on their savings. It’s important to keep an eye on the OCR and adjust your savings strategy accordingly.
  3. Cost of goods and services: When the OCR is high, prices may rise more slowly, which means that the cost of goods and services may be lower. Conversely, when the OCR is low, prices may rise more quickly, which means that the cost of goods and services may be higher. This can affect everything from groceries to fuel to healthcare.
  4. Exchange rate: When the OCR is high, the New Zealand dollar may appreciate, which means that imports become cheaper but exports become more expensive. Conversely, when the OCR is low, the New Zealand dollar may depreciate, which means that exports become cheaper but imports become more expensive. This can impact businesses that rely on exports or imports, as well as travellers who are exchanging money for overseas trips.

As a financial adviser, I understand that navigating the effects of OCR can be overwhelming, but I’m here to help. My role is to help you understand how the OCR impacts your financial situation and create a customised plan that aligns with your goals. Whether it’s adjusting your borrowing or saving strategy, managing credit card debt, or investing for the future, I can provide guidance and support. With my expertise, we can navigate the ups and downs of the OCR together and ensure that you are making the most of your financial opportunities. Don’t let the OCR hold you back – contact me today to schedule a consultation and get started on your path to financial success.

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