OCR the same, but budgets must change

The Official Cash Rate (OCR) is not changing which means mortgage and savings interest rates may remain the same in the short term – however other changes are still occurring which will impact many people’s disposable income.

That’s the message from Manager of sorted.org.nz’s David Kneebone, following today’s OCR announcement.

Mr Kneebone cautions that while it’s unlikely there will be any added pressure on interest rates, household’s need to take stock of their budgets.

“October is bringing tax cuts, which will mean extra money in some people’s bank accounts after payday.

“But GST is also increasing; so the cost of goods and services will be going up too. It’s important to understand how the changes will affect you,” Mr Kneebone says.

“Some Kiwis will be better off after the October changes, and if that’s the case for you it’s important to plan for the best way to deal with any additional funds. Increasing mortgage payments, paying off credit card debt or increasing your contribution to KiwiSaver are all good options to consider,” he says.

“We know changes are coming, so plan for them by taking a fresh look at your budget. Sorted.org.nz has a Budget calculator that makes this easy,” he says.

ENDS

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