Reserve Bank Holds OCR Steady at 2.25% February 2026
The Reserve Bank of New Zealand (RBNZ) announced on Wednesday that it is holding the Official Cash Rate (OCR) at 2.25%, pausing after eight consecutive cuts that began in August 2024. The decision signals growing confidence that inflation is back under control and the economy is strengthening.
Key Points from the Decision
The OCR has been cut 8 times since August 2024, falling from 5.25% to 2.25%. Inflation, which peaked in 2022 and briefly touched the top of the 1–3% target band at end of 2025, is expected to already be back within range in Q1 2026. The RBNZ expects inflation to settle at its 2% midpoint within the next 12 months. Economic activity is picking up, supported by lower interest rates and strong dairy and meat export prices. Unemployment is forecast to decline this year as businesses begin hiring more workers.
What This Means for Home Loan Borrowers
For homeowners on floating or rolling fixed rates, the good news is that bank mortgage rates are now at multi-year lows compared to their 2023–2024 peaks. However, economists at both ANZ and ASB have signalled that mortgage rates could start rising again from mid-2026 as markets price in eventual OCR hikes. Borrowers coming off fixed terms soon may benefit from locking in current rates.
OCR CHANGES AND BANK HOME LOAN RATES — AUGUST 2024 TO FEBRUARY 2026
| Date | Decision | OCR | Change | ANZ Floating | ASB Variable |
|---|---|---|---|---|---|
| May 2023 | Peak | 5.50% | — | ~8.64% | ~8.64% |
| 14 Aug 2024 | Cut | 5.25% | −0.25% | ~8.39% | 8.39% |
| 9 Oct 2024 | Cut | 4.75% | −0.50% | ~7.89% | 7.49% |
| 27 Nov 2024 | Cut | 4.25% | −0.50% | ~7.29% | 6.99% |
| 19 Feb 2025 | Cut | 3.75% | −0.50% | ~6.89% | 6.59% |
| 9 Apr 2025 | Cut | 3.50% | −0.25% | 6.69% | 6.39% |
| 28 May 2025 | Cut | 3.25% | −0.25% | 6.49% | 5.99% |
| 20 Aug 2025 | Cut | 3.00% | −0.25% | 6.29% | 5.79% |
| 8 Oct 2025 | Cut | 2.50% | −0.50% | 5.89% | 5.39% |
| 26 Nov 2025 | Cut | 2.25% | −0.25% | 5.69% | 5.19% |
| 18 Feb 2026 | Hold | 2.25% | No change | 5.79% | 5.19% |
Note: ANZ floating and ASB variable rates are approximate based on publicly available announcements. Actual rates may vary. Always check directly with your bank.
What's Next?
Most economists agree the OCR has now reached its floor for this cycle. The next RBNZ decision is scheduled for 8 April 2026. Homeowners are advised to speak with a mortgage adviser before their next fixed term rolls over.
If you want to talk to a professional mortgage advisor click here.
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