The Reserve Bank of New Zealand raised its cash rate by 25 bps to 2.75%, delivering a second straight hike after an increase in July and in line with expectations. The decision reflects the need to gradually remove monetary stimulus and bring inflation back to the 2% target midpoint while supporting growth and employment. Annual inflation rose to 4.1% in Q2 2026, largely due to higher fuel prices stemming from the Middle East conflict. However, core inflation, wage growth and inflation expectations remain consistent with inflation returning to the 1-3% target band by mid-2027. The economy has likely resumed its recovery after lacklustre growth in Q2, supported by resilient external demand, export prices and investment in export-oriented sectors. Still, weak income growth, job insecurity and flat house prices weigh on household spending and residential investment. The Committee expects the recovery to strengthen and broaden but remains alert to risks of more persistent inflation. source: Reserve Bank of New Zealand
The benchmark interest rate in New Zealand was last recorded at 2.75 percent. Interest Rate in New Zealand averaged 6.53 percent from 1985 until 2026, 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 September of 2026.
The benchmark interest rate in New Zealand was last recorded at 2.75 percent. Interest Rate in New Zealand is expected to be 2.75 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 4.00 percent in 2027 and 3.75 percent in 2028, according to our econometric models.