Good news #1 – Interest rates won't go up (much)
Some economists worried the government's big-spending budget would cause more inflation.
More inflation = higher interest rates.
If there's more inflation, the Reserve Bank would respond by hiking the OCR even higher.
That means you and I are paying even more for our mortgages.
But that didn't happen.
The Reserve Bank said they don't think the budget will cause extra inflation.
In their words, "the government is more friend than foe."
That's why the Reserve Bank did what they said they'd do months ago. A 0.25% rise in the OCR.
Because banks expected that increase, it's already priced into current mortgage rates.
So the Reserve Bank says that this OCR increase "supports" current interest rates. They don't think they'll increase (much).