How Interest Rates Could Impact Your Investments

With the Reserve Bank of New Zealand holding the Official Cash Rate (OCR) at 2.25% and inflation forecast to remain elevated, monetary conditions continue to tighten.

While higher rates may support term deposit returns in the short term, persistent inflation can erode real returns over time.

Understanding how these dynamics influence your investment strategy is key in the current environment.

Patrick Washer, Portfolio Manager at Devon Funds, discusses the recent OCR decision and its potential impact on your investments.