The Reserve Bank of New Zealand raised its official cash rate (OCR) by 25 basis points to 0.5% during its October meeting and matching market expectations. It was the first rate hike since June 2014, with policymakers saying the decision was appropriate to maintain low inflation and support maximum employment. The central bank mentioned it was aware that the latest COVID-19 curbs have badly affected some businesses in Auckland and a range of service industries, but New Zealand’s public health is evolving as vaccination rates rise. On inflation outlook, headline inflation is expected to increase above 4% in the near term before returning towards the 2% midpoint over the medium term. The near-term rise in inflation is accentuated by higher oil prices, rising transport costs, and the impact of supply shortfalls. The board added that further removal of stimulus is expected over time, with future moves contingent on the medium-term outlook for inflation and employment. source: Reserve Bank of New Zealand

Interest Rate in New Zealand averaged 6.90 percent from 1985 until 2021, reaching an all time high of 67.32 percent in March of 1985 and a record low of 0.25 percent in March of 2020. This page provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. New Zealand Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2021.

Interest Rate in New Zealand is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the New Zealand Interest Rate is projected to trend around 1.50 percent in 2022 and 2.00 percent in 2023, according to our econometric models.

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New Zealand Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-07-14 02:00 AM Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-08-18 02:00 AM Interest Rate Decision 0.25% 0.25% 0.5% 0.5%
2021-10-06 01:00 AM Interest Rate Decision 0.5% 0.25% 0.5% 0.5%
2021-11-24 01:00 AM Interest Rate Decision 0.5% 0.5%
2021-11-24 02:00 AM RBNZ Press Conference


News Stream
New Zealand Raises Rate for 1st Time in 7 Years
The Reserve Bank of New Zealand raised its official cash rate (OCR) by 25 basis points to 0.5% during its October meeting and matching market expectations. It was the first rate hike since June 2014, with policymakers saying the decision was appropriate to maintain low inflation and support maximum employment. The central bank mentioned it was aware that the latest COVID-19 curbs have badly affected some businesses in Auckland and a range of service industries, but New Zealand’s public health is evolving as vaccination rates rise. On inflation outlook, headline inflation is expected to increase above 4% in the near term before returning towards the 2% midpoint over the medium term. The near-term rise in inflation is accentuated by higher oil prices, rising transport costs, and the impact of supply shortfalls. The board added that further removal of stimulus is expected over time, with future moves contingent on the medium-term outlook for inflation and employment.
2021-10-06
New Zealand Delays Rate Hike amid Fresh Outbreak
The Reserve Bank of New Zealand held its official cash rate (OCR) at a record low of 0.25% during its August meeting, defying market expectations of an increase of 25 basis points, after the country was put into a snap COVID-19 lockdown. That said, policymakers still expect a hike before year-end to anchor inflation expectations and contribute to maximum sustainable employment. The board noted that inflation pressures are being accentuated in the near term, amid rising capacity pressures, higher oil prices and transport costs, and supply shortfalls. Near-term consumer price inflation is expected to rise above the committee’s target before returning to the 2% midpoint in mid-2022. Today's decision follows the recent halting of additional bond purchases under the Large Scale Asset Purchase programme in July.
2021-08-18
New Zealand Holds Rates, Reduces Stimulus
The Reserve Bank of New Zealand held its official cash rate (0CR) at a record low of 0.25% during its July meeting but decided to halt additional asset purchases under the Large Scale Asset Purchase programme by July 23th, 2021. Policymakers said some monetary stimulus remains necessary but its level could be reduced to minimize the risk of not meeting consumer price and employment objectives over the medium-term. They reiterated there will be near-term spikes in CPI inflation in Q2 and Q3, amid factors that are either one-off in nature or expected to be temporary. The committee agreed that more persistent consumer price inflation pressure is expected to build over time. The board added recent data indicate the economy remains robust despite the ongoing impact of international border restrictions. Aggregate economic activity is above its pre-COVID-19 level, with household spending and construction output at high levels.
2021-07-14

New Zealand Last Unit Reference Previous Highest Lowest
Interest Rate 0.50 percent Oct/21 0.25 67.32 0.25
Money Supply M0 8497.00 NZD Million Sep/21 8322.00 213058.00 1081.00
Money Supply M1 125516.00 NZD Million Aug/21 127301.00 127301.00 1585.70
Interbank Rate 1.53 percent Sep/19 1.25 24.25 1.25
Money Supply M2 150882.00 NZD Million Jan/17 153357.00 155766.00 19760.00
Money Supply M3 369963.00 NZD Million Aug/21 373053.00 373053.00 6726.00
Foreign Exchange Reserves 22640.00 NZD Million Sep/21 22622.00 39252.00 1029.50
Banks Balance Sheet 637042.00 NZD Million Aug/21 643677.00 643677.00 236047.00
Deposit Interest Rate 0.56 percent Oct/21 0.58 16.32 -0.13
Central Bank Balance Sheet 88668.00 NZD Million Sep/21 88816.00 88816.00 7116.00
Loans To Private Sector 117121.00 NZD Million May/21 116660.00 123422.00 34958.00


New Zealand Interest Rate
In New Zealand, interest rates decisions are taken by the Reserve Bank of New Zealand. The official interest rate is the Official Cash Rate (OCR). The OCR was introduced in March 1999 and is reviewed eight times a year by the Bank. The OCR influences the price of borrowing money in New Zealand and provides the Reserve Bank with a means of influencing the level of economic activity and inflation.