The Reserve Bank has just pushed the OCR up by 75 basis points, which has put it up to 4.25 percent now.

This is the highest level the OCR has been at since 2008, and speculation forecasts that it'll peak at 5.5 percent and cause New Zealand to enter a recession by next year.

Political editor Barry Soper says that this creates a negative precedent for 2023, and these rates are set to backfire on recent home buyers.

LISTEN ABOVE

• Economist expects RBNZ to raise the OCR by 75 basis points
• National's tax policy under review post-OCR hike- Luxon
• Major New Zealand banks lift mortgage rates after OCR hike