Finsure NZ says borrowers need tailored guidance as rates climb
Borrowers should prepare for further interest rate rises from the Reserve Bank of New Zealand (RBNZ), and mortgage advisers will play a central role in helping them through it, according to Finsure NZ country manager Jenny Campbell (pictured).
Campbell expects the RBNZ to raise the official cash rate (OCR) by 25 basis points to 3% at its meeting on Wednesday, 28 October. That would follow a rise of the same size on 2 September. She pointed to inflationary pressure from a weaker exchange rate and a sharp jump in fuel prices.
Most major banks now share that view. After September quarter data showed core inflation firming, ANZ, ASB, BNZ, and Westpac all tipped a 25-basis-point hike on 28 October, with Kiwibank the outlier.
Advisers’ role in a noisy market
With economic uncertainty already weighing on households, Campbell said borrowers will want an adviser who “cuts through all that noise and helps them with clear guidance”.
“Borrowers will need guidance that is specific to their circumstances, and it is up to advisers to be proactive and deliver,” she said.
She described the rate outlook as “an opportunity for advisers to lead the way for their customers”, helping clients understand their options, plan ahead, and make informed decisions.
Further rises forecast into 2027
Beyond October, Campbell cited forecasts from Westpac economists, who expect the OCR to reach 3.5% in the first quarter of 2027. They also expect two more 25-basis-point increases, in June and September 2027, which would take the rate to 4%.
ASB, which lifted its outlook in a preview of the October decision, sees a lower peak. Its economists expect hikes in October, December, and February, taking the OCR to 3.5%, with risks tilted higher.
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