OCR holds at 2.25% – what does it mean for your mortgage?

While there was no surprise in the decision itself, the real focus was always going to be the forward outlook –  particularly around inflation and the future direction of interest rates.

As shared in our latest video update:

“The interesting thing with this announcement was always going to be, where does the Reserve Bank see inflation heading into the future and in turn, what is their updated OCR track?”

Inflation is moving back towards target

At the end of last year, inflation ticked up to 3.1%, briefly pushing above the Reserve Bank’s target band. That raised concerns about whether rate hikes might come sooner. However, the Reserve Bank now expects inflation to ease.

“The Reserve Bank’s effectively said they think we’re probably back below that 3% target band already, and inflation should track down towards the 2% mark over the next 12 months.”

Are interest rates going up?

While the OCR hasn’t moved, that doesn’t mean we’re standing still. Interest rates have already edged up since late last year, and the Reserve Bank signalled that the OCR may begin rising slightly earlier than previously expected – potentially towards the back end of 2026.

“Either way you look at it, interest rates are heading in the upward direction. We’re just not sure exactly by how much and exactly when they’ll move.”

For borrowers, that means preparation is key. The direction appears clear – timing is the uncertainty.

Best mortgage structure right now

In the current environment, balance is important.

“I’m favouring more of the 2 and 3 year fixed terms, giving you that medium term certainty and still being really competitive.”

The right structure ultimately depends on your goals, plans and appetite for certainty.

Let’s plan your next move

With rates expected to trend upward later this year, now’s a smart time to review your structure. Our mortgage advisers are here to help map out a plan that fits your goals. Speak with an Enva adviser today by emailing us at mortgages@enva.co.nz or call 0508 287 672.

Plus, when you book a mortgage review, you’ll go in the draw to win a $5,000 travel voucher! Find out more here.

The Reserve Bank’s next OCR announcement is on Wednesday, 8 April 2026.
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The information contained in this video is for general information purposes only. 
It is not intended to constitute financial advice and does not take your individual 
circumstances and financial situation into account. We encourage you to seek assistance 
from a trusted financial adviser.