New Zealand Interest Rate  1985-2017 | Data | Chart | Calendar | Forecast

The Reserve Bank of New Zealand kept its official cash rate unchanged at record low of 1.75 percent on June 21st, 2017, as widely expected. The central bank left the monetary rate unchanged for the fourth straight meeting. Policymakers underscored that major challenges remain with persistent surplus capacity and extensive political uncertainty. They also mentioned soft GDP growth in the last quarter of 2017 and that house price inflation has moderated further. The central bank also stated that monetary policy will remain accommodative for a considerable period, as numerous uncertainties remain and policy may need to adjust accordingly. Interest Rate in New Zealand averaged 7.60 percent from 1985 until 2017, reaching an all time high of 67.32 percent in March of 1985 and a record low of 1.75 percent in November of 2016.

New Zealand Interest Rate
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Calendar GMT Actual Previous Consensus Forecast (i)
2017-03-22 08:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-05-10 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-06-21 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-08-09 09:00 PM Interest Rate Decision 1.75% 1.75%
2017-09-27 09:00 PM Interest Rate Decision 1.75%
2017-11-08 08:00 PM Interest Rate Decision 1.75%




New Zealand Keeps Interest Rate Steady At 1.75%


The Reserve Bank of New Zealand kept its official cash rate unchanged at record low of 1.75 percent on June 21st, 2017, as widely expected. The central bank left the monetary rate unchanged for the fourth straight meeting. Policymakers underscored that major challenges remain with persistent surplus capacity and extensive political uncertainty. They also mentioned soft GDP growth in the last quarter of 2017 and that house price inflation has moderated further. The central bank also stated that monetary policy will remain accommodative for a considerable period, as numerous uncertainties remain and policy may need to adjust accordingly.

Statement by Reserve Bank Governor Graeme Wheeler:

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent.

Global economic growth has increased and become more broad-based.  However, major challenges remain with on-going surplus capacity and extensive political uncertainty.

Headline inflation has increased over the past year in several countries, but moderated recently with the fall in energy prices.  Core inflation and long-term bond yields remain low.  Monetary policy is expected to remain stimulatory in the advanced economies, but less so going forward.

The trade-weighted exchange rate has increased by around 3 percent since May, partly in response to higher export prices.  A lower New Zealand dollar would help rebalance the growth outlook towards the tradables sector.

GDP growth in the March quarter was lower than expected, with weaker export volumes and residential construction partially offset by stronger consumption.  Nevertheless, the growth outlook remains positive, supported by accommodative monetary policy, strong population growth, and high terms of trade.  Recent changes announced in Budget 2017 should support the outlook for growth.

House price inflation has moderated further, especially in Auckland.  The slowdown in house price inflation partly reflects loan-to-value ratio restrictions, and tighter lending conditions. This moderation is projected to continue, although there is a risk of resurgence given the on-going imbalance between supply and demand.

The increase in headline inflation in the March quarter was mainly due to higher tradables inflation, particularly petrol and food prices.  These effects are temporary and may lead to some variability in headline inflation.  Non-tradables and wage inflation remain moderate but are expected to increase gradually.  This will bring future headline inflation to the midpoint of the target band over the medium term. Longer-term inflation expectations remain well-anchored at around 2 percent.

Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly.

Mario | mario@tradingeconomics.com
6/22/2017 9:14:17 AM



New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 67.32 1.75 percent [+]
Interbank Rate 2.19 2.26 24.25 2.19 percent [+]
Money Supply M0 5988.00 5897.00 213058.00 1081.00 NZD Million [+]
Money Supply M1 61173.00 59856.00 61173.00 1585.70 NZD Million [+]
Money Supply M2 150882.00 153357.00 155766.00 19760.00 NZD Million [+]
Money Supply M3 278067.00 275412.00 325467.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 26751.00 26562.00 28557.00 1029.50 NZD Million [+]
Banks Balance Sheet 514803.00 506189.00 514803.00 236047.00 NZD Million [+]
Deposit Interest Rate 3.20 3.80 16.32 3.20 percent [+]
Central Bank Balance Sheet 26794.00 25464.00 33766.00 7116.00 NZD Million [+]
Loans To Private Sector 105253.00 104201.00 105253.00 34958.00 NZD Million [+]


New Zealand Interest Rate Notes

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. This page provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. New Zealand Interest Rate - actual data, historical chart and calendar of releases - was last updated on June of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 67.32 1.75 1985 - 2017 percent Daily



interest rate by Country

Last
Brazil 10.25 May/17
Russia 9.00 Jun/17
Turkey 8.00 Jun/17
Mexico 7.00 Jun/17
India 6.25 Jun/17
Indonesia 4.75 Jun/17
China 4.35 Jun/17
Australia 1.50 Jun/17
South Korea 1.25 May/17
United States 1.25 Jun/17
Canada 0.50 May/17
United Kingdom 0.25 Jun/17
Euro Area 0.00 Jun/17
France 0.00 Jun/17
Germany 0.00 Jun/17
Italy 0.00 Jun/17
Netherlands 0.00 Jun/17
Spain 0.00 Jun/17
Japan -0.10 Jun/17
Switzerland -0.75 Jun/17