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 November 8th of 2017, as widely expected. The central bank last moved the key rate in November of 2016. Policymakers underscored that global economic growth has continued to improve, although inflation and wages remain subdued; that the exchange rate has eased since the August Statement; and that GDP for the second quarter grew in line with expectations. 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. Consumer prices in New Zealand increased 1.9 percent year-on-year in the third quarter of 2017, above market expectations of 1.8 percent and up from 1.7 percent in the previous period. Interest Rate in New Zealand averaged 7.56 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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New Zealand Holds Interest Rate at 1.75% as Expected


The Reserve Bank of New Zealand kept its official cash rate unchanged at record low of 1.75 percent on November 8th of 2017, as widely expected. The central bank last moved the key rate in November of 2016. Policymakers underscored that global economic growth has continued to improve, although inflation and wages remain subdued; that the exchange rate has eased since the August Statement; and that GDP for the second quarter grew in line with expectations. 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. Consumer prices in New Zealand increased 1.9 percent year-on-year in the third quarter of 2017, above market expectations of 1.8 percent and up from 1.7 percent in the previous period.

Statement by Reserve Bank Governor Grant Spencer:

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

Global economic growth continues to improve, although inflation and wage outcomes remain subdued. Commodity prices are relatively stable. Bond yields and credit spreads remain low and equity prices are near record levels. Monetary policy remains easy in the advanced economies but is gradually becoming less stimulatory.

The exchange rate has eased since the August Statement and, if sustained, will increase tradables inflation and promote more balanced growth.

GDP in the June quarter grew broadly in line with expectations, following relative weakness in the previous two quarters. Employment growth has been strong and GDP growth is projected to strengthen, with a weaker outlook for housing and construction offset by accommodative monetary policy, the continued high terms of trade, and increased fiscal stimulus.

The Bank has incorporated preliminary estimates of the impact of new government policies in four areas: new government spending; the KiwiBuild programme; tighter visa requirements; and increases in the minimum wage. The impact of these policies remains very uncertain.

House price inflation has moderated due to loan-to-value ratio restrictions, affordability constraints, reduced foreign demand, and a tightening in credit conditions. Low house price inflation is expected to continue, reinforced by new government policies on housing.

Annual CPI inflation was 1.9 percent in September although underlying inflation remains subdued. Non-tradables inflation is moderate but expected to increase gradually as capacity pressures increase. Tradables inflation has increased due to the lower New Zealand dollar and higher oil prices, but is expected to soften in line with projected low global inflation. Overall, CPI inflation is projected to remain near the midpoint of the target range and longer-term inflation expectations are well anchored at 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
11/9/2017 9:28:42 AM



Calendar GMT Actual Previous Consensus TEForecast
2017-08-09 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-09-27 08:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-11-08 08:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-02-07 08:00 PM Interest Rate Decision 1.75% 1.75%
2018-03-21 08:00 PM Interest Rate Decision 1.75%
2018-05-09 09:00 PM Interest Rate Decision 1.75%


New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 67.32 1.75 percent [+]
Interbank Rate 2.38 2.15 24.25 2.00 percent [+]
Money Supply M0 6055.00 5949.00 213058.00 1081.00 NZD Million [+]
Money Supply M1 63395.00 61146.00 63395.00 1585.70 NZD Million [+]
Money Supply M3 286487.00 281276.00 286487.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 32785.00 29449.00 32785.00 1029.50 NZD Million [+]
Banks Balance Sheet 512148.00 517633.00 520747.00 236047.00 NZD Million [+]
Deposit Interest Rate 3.20 3.80 16.32 3.20 percent [+]
Loans To Private Sector 103771.00 104527.00 104527.00 34958.00 NZD Million [+]
Central Bank Balance Sheet 31417.00 27004.00 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 December 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
Country Last
Turkey 8.00 Dec/17
Russia 7.75 Dec/17
Mexico 7.25 Dec/17
Brazil 7.00 Dec/17
India 6.00 Dec/17
China 4.35 Nov/17
Indonesia 4.25 Dec/17
Australia 1.50 Dec/17
South Korea 1.50 Nov/17
United States 1.50 Dec/17
Canada 1.00 Dec/17
United Kingdom 0.50 Dec/17
Euro Area 0.00 Dec/17
France 0.00 Dec/17
Germany 0.00 Dec/17
Italy 0.00 Dec/17
Netherlands 0.00 Dec/17
Spain 0.00 Dec/17
Japan -0.10 Oct/17
Switzerland -0.75 Dec/17