OCR won’t impact the general election

Research head Stephen Toplis says it was not only the bank’s rhetoric but also because there is no talk of moving rates in either direction between now and October’s general election.

Inflation has peaked and wholesale interest rates have also likely peaked after the Reserve Bank yesterday lifted the OCR to 5.5% and will pause any further increases.

It, however, didn’t stop the ASB from immediately passing on the 25bp rise to some mortgage interest rates. Its housing variable rate moved from 8.39% to 8.64% and the Orbit rate from 8.48% to 8.74%.

Toplis says had the bank’s economists been at the helm they would not have hiked the OCR yesterday.