New Zealand Interest Rate  1985-2018 | Data | Chart | Calendar | Forecast

The Reserve Bank of New Zealand left its official cash rate unchanged at record low of 1.75 percent on August 8th, saying economic growth has moderated while inflation is likely to increase in the near term due to higher fuel prices and a lower exchange rate. Also, policymakers underscored that rates will remain at this level through 2019 and into 2020. The central bank last moved the key rate in November of 2016. Interest Rate in New Zealand averaged 7.42 percent from 1985 until 2018, 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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New Zealand Leaves Interest Rate Unchanged at 1.75%


The Reserve Bank of New Zealand left its official cash rate unchanged at record low of 1.75 percent on August 8th, saying economic growth has moderated while inflation is likely to increase in the near term due to higher fuel prices and a lower exchange rate. Also, policymakers underscored that rates will remain at this level through 2019 and into 2020. The central bank last moved the key rate in November of 2016.

Statement by Reserve Bank Governor Adrian Orr:

The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020, longer than we projected in our May Statement. The direction of our next OCR move could be up or down.

While recent economic growth has moderated, we expect it to pick up pace over the rest of this year and be maintained through 2019.

Robust global growth and a lower New Zealand dollar exchange rate will support export earnings. At home, capacity and labour constraints promote business investment, supported by low interest rates. Government spending and investment is also set to rise, while residential construction and household spending remain solid.

The labour market has tightened over the past year and employment is roughly around its maximum sustainable level. We expect the unemployment rate to decline modestly from its current level.

There are welcome early signs of core inflation rising. Inflation will increase towards 2 percent over the projection period as capacity pressures bite. This path may be bumpy however, with one-off price changes from global oil prices, a lower exchange rate, and announced petrol excise tax rises expected. We will look through this volatility as appropriate, and only respond to any persistent movements in inflation.

Risks remain to our central forecast. The recent moderation in growth could last longer. Low business confidence can affect employment and investment decisions. Conversely, there is a chance that inflation could increase faster if cost pressures can pass through into higher prices and impact inflation expectations.

We will keep the OCR at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation.



Mario | mario@tradingeconomics.com
8/8/2018 9:31:16 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-05-09 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-06-27 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-08-08 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-09-26 09:00 PM Interest Rate Decision 1.75% 1.75%
2018-11-07 08:00 PM Interest Rate Decision 1.75%
2018-11-27 08:00 PM RBNZ Financial Stability Report


New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 67.32 1.75 percent [+]
Interbank Rate 2.40 2.35 24.25 2.00 percent [+]
Money Supply M0 6292.00 6409.00 213058.00 1081.00 NZD Million [+]
Money Supply M1 66670.00 65717.00 67160.00 1585.70 NZD Million [+]
Money Supply M3 297798.00 295316.00 297798.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 29855.00 32240.00 32785.00 1029.50 NZD Million [+]
Banks Balance Sheet 532777.00 535201.00 535201.00 236047.00 NZD Million [+]
Deposit Interest Rate 3.20 3.80 16.32 3.20 percent [+]
Loans To Private Sector 110548.00 109196.00 110548.00 34958.00 NZD Million [+]
Central Bank Balance Sheet 32203.00 30420.00 33766.00 7116.00 NZD Million [+]


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. 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 August of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 67.32 1.75 1985 - 2018 percent Daily




interest rate by Country
Country Last
Turkey 17.75 Jul/18
Mexico 7.75 Aug/18
Russia 7.25 Jul/18
Brazil 6.50 Aug/18
India 6.50 Aug/18
Indonesia 5.50 Aug/18
China 4.35 Jul/18
United States 2.00 Aug/18
Australia 1.50 Aug/18
Canada 1.50 Jul/18
South Korea 1.50 Jul/18
United Kingdom 0.75 Aug/18
Euro Area 0.00 Jul/18
France 0.00 Jul/18
Germany 0.00 Jul/18
Italy 0.00 Jul/18
Netherlands 0.00 Jul/18
Spain 0.00 Jul/18
Japan -0.10 Jul/18
Switzerland -0.75 Jul/18


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