The Reserve Bank has kept the Official Cash Rate at 5-point-5-percent, but says higher rates will stick around longer as inflation persists.
Economists are mixed in what they think will happen next with the OCR - some expecting a small hike in November, while others think the next movement will be to drop the rate.
Despite the stagnant OCR, banks have been hiking their mortgage rates in recent weeks, increasing pressure on homeowners.
Kiwibank's chief economist Jarrod Kerr spoke to Corin Dann.