The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 0.25% on May 13th 2020. Policymakers noted that the domestic economy deteriorated since the previous meeting due to the coronavirus pandemic and projected that the sharp contraction in activity will likely reduce inflation and employment below the Bank’s objectives for several years. The Committee also expanded the Large Scale Asset Purchase program potential to NZD 60 billion from the previous NZD 33 billion limits aiming to reduce further the cost of borrowing quickly. Policymakers said that a negative OCR will become an option in the future, although at present financial institutions are not yet operationally ready. The Committee added that it is prepared to use additional monetary policy tools if and when needed, including reducing the OCR further, additional types of assets to the LSAP program, and providing fixed-term loans to banks.
Interest Rate in New Zealand averaged 7.26 percent from 1985 until 2019, reaching an all time high of 67.32 percent in March of 1985 and a record low of 1 percent in August of 2019. 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 May of 2020. source: Reserve Bank of New Zealand
Interest Rate in New Zealand is expected to be 0.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in New Zealand to stand at -0.25 in 12 months time. In the long-term, the New Zealand Interest Rate is projected to trend around -0.25 percent in 2021 and 0.25 percent in 2022, according to our econometric models.