Live Q&A: How high will mortgage rates go? Economist Tony Alexander answers your questions

The latest QV House Price Index shows the average home decreased in value by 5.1 per cent to $951,040 at the end of October compared to the year earlier. Photo / Dean Purcell

The Reserve Bank delivered an unprecedented 75 basis point hike yesterday, taking the official cash rate (OCR) from 3.5 per cent to 4.25 per cent - its highest level in 14 years.

The RBNZ now sees the OCR rising to a peak of 5.5 per cent in 2023 and has forecast that New Zealand will enter recession from mid-2023.

That’s bad news for borrowers, who have already weathered multiple interest rate rises since late 2021.

Meanwhile, as the market cools, house prices continue to fall - the latest QV House Price Index shows the average home decreased in value by 5.1 per cent to $951,040 at the end of October compared to the year earlier.

In the wake of the Reserve Bank’s big move, we asked economist and property expert Tony Alexander to join us online for a live Q&A with Herald Premium subscribers this morning.

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