Interest rates may have already reached their peak.

In May 2020, borrowers taking out a standard one-year rate were paying an average of 3.2 percent, but that increased to just over 5 percent in May this year.

It comes as ANZ, BNZ and Westpac cut their two-year fixed mortgage rates.

Squirrel Mortgages CEO John Bolton says told Heather Du Plessis Allan the OCR will keep increasing, but longer-term fixed rates are peaking.

“Looks like New Zealand’s economy is slowing down quite quickly. We’ve had a lot of bad news lately, that’s sort of starting to dampen down how fast and how far the market believes the Reserve Bank’s gonna have to push the OCR up.”

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