OCR Hold: No Surprises, No Shocks — But What Does It Mean for STR Investors?

By Scott Mears - Aspire PRO Enterprises

The Reserve Bank of New Zealand held the Official Cash Rate (OCR) at 3.25% last week, in a move that surprised absolutely no one. 

As expected, the Monetary Policy Committee opted for a wait-and-see approach, keeping rates on hold while it monitors inflation, energy costs, and global economic pressures.

And while headlines might talk about “economic uncertainty” and “inflation risk,” the truth for most property investors - especially those in the short-term rental (STR) space is this: not much changes.

The Market is Still Soft, and That’s Not a Bad Thing

The housing market remains flat, with minimal price movement and no urgent FOMO driving buyers. Listings are up, job security is still patchy and first-home buyers are cautiously returning and it remains a buyer’s market.

That’s good news for Short Term Rental (STR) investors looking to expand. With less competition and motivated sellers (including older investors exiting due to high costs), it’s a great time to negotiate smarter purchases. Property prices may stay flat for the remainder of 2025 and that stability offers room for cashflow-focused STR operators to enter the market.

OCR Doesn’t Move, But Neither Does the Risk

Some hoped for a rate cut, but the RBNZ is holding back. Inflation is expected to edge back up to 3% or more due to rising power, food, and council rates. Business pricing expectations are up, and there’s growing concern that once consumers feel confident again, businesses may increase prices to recoup margin losses.

For STR owners, this means mortgage rates won’t drop sharply any time soon. Fixed rates are stable for now, and spreading loan terms (e.g. fixing across 1–3 years) is still a possible way to hedge uncertainty.

The good news? If you're running a well-managed STR in the right location, your income isn't overly sensitive to OCR shifts especially if you're priced well and achieving high occupancy.

Final Takeaway

The Reserve Bank didn’t cut the OCR and that’s okay. For STR investors, nothing has fundamentally changed. And in uncertain times, no change can be a competitive advantage.

Focus on what you can control: cashflow, occupancy, and guest experience. The OCR will move eventually but in the meantime, your property should be working hard, even if the economy isn’t.