Official Cash Rate

PHOTO: Adrian Orr

After this week’s interest rate hike, Adrian Orr has a simple message for people who got on the property ladder by borrowing big: welcome to the real world.

mortgage stress

First-home buyer ‘not very hopeful’ for mortgage rate approval as Reserve Bank lifts Official Cash Rate

The head of the Reserve Bank told The AM Show on Thursday it’s his job to ensure inflation stays low and stable and employment is maximised, not to cater to the whims of homeowners.

“There are exporters, there are importers, there are consumers, there are investors, there are savers, there are borrowers – focusing on one specific sector of the economy is not something the Reserve Bank does or could do.”

The bank hiked the official cash rate (OCR) by 0.25 percent on Wednesday to 0.75 percent, the second time it’s gone up since the start of October after seven years of cuts.