The Reserve Bank of New Zealand raised its official cash rate (OCR) by 50 bps to 2% during the May meeting, the 5th straight rate hike, matching market consensus. The board also signaled the OCR would peak at a higher level than previously forecast amid surging prices, adding that a larger and earlier rise reduces the risk of inflation becoming persistent, while also providing more flexibility ahead in light of the highly uncertain global economic environment. Policymakers viewed that domestic economy remains strong, on the back of a solid labor market, sound household balance sheets, continued fiscal support, and easing of COVID-19 curbs. That said, they warned that headwinds are strong, amid global uncertainty due to multiple headwinds. Once aggregate supply and demand are more in balance, the OCR can then return to a lower, more neutral, level. On home prices, they have declined, reflecting in part higher mortgage interest rates and increased supply of housing. source: Reserve Bank of New Zealand

Interest Rate in New Zealand averaged 6.82 percent from 1985 until 2022, 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 June of 2022.

Interest Rate in New Zealand is expected to be 2.00 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 3.50 percent in 2023 and 3.00 percent in 2024, according to our econometric models.

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New Zealand Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-02-23 01:00 AM RBNZ Interest Rate Decision 1.0% 0.75% 1% 1%
2022-04-13 02:00 AM RBNZ Interest Rate Decision 1.5% 1% 1.25% 1.25%
2022-05-25 02:00 AM RBNZ Interest Rate Decision 2.0% 1.5% 2% 2%
2022-07-13 02:00 AM RBNZ Interest Rate Decision 2.0%
2022-08-17 02:00 AM RBNZ Interest Rate Decision
2022-08-17 03:00 AM RBNZ Press Conference


Related Last Previous Unit Reference
Interest Rate 2.00 1.50 percent May 2022
Money Supply M0 8987.00 9087.00 NZD Million May 2022
Money Supply M1 141243.00 140155.00 NZD Million Apr 2022
Interbank Rate 1.53 1.25 percent Sep 2019
Money Supply M2 150882.00 153357.00 NZD Million Jan 2017
Money Supply M3 391962.00 390385.00 NZD Million Apr 2022
Foreign Exchange Reserves 22095.00 18237.00 NZD Million May 2022
Banks Balance Sheet 681519.00 666714.00 NZD Million Apr 2022
Deposit Interest Rate 2.09 2.08 percent Jun 2022
Central Bank Balance Sheet 93722.00 89480.00 NZD Million May 2022
Loans To Private Sector 117121.00 116660.00 NZD Million May 2021

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.
Actual Previous Highest Lowest Dates Unit Frequency
2.00 1.50 67.32 0.25 1985 - 2022 percent Daily

News Stream
New Zealand Raises Cash Rate Again, Hints More Hikes
The Reserve Bank of New Zealand raised its official cash rate (OCR) by 50 bps to 2% during the May meeting, the 5th straight rate hike, matching market consensus. The board also signaled the OCR would peak at a higher level than previously forecast amid surging prices, adding that a larger and earlier rise reduces the risk of inflation becoming persistent, while also providing more flexibility ahead in light of the highly uncertain global economic environment. Policymakers viewed that domestic economy remains strong, on the back of a solid labor market, sound household balance sheets, continued fiscal support, and easing of COVID-19 curbs. That said, they warned that headwinds are strong, amid global uncertainty due to multiple headwinds. Once aggregate supply and demand are more in balance, the OCR can then return to a lower, more neutral, level. On home prices, they have declined, reflecting in part higher mortgage interest rates and increased supply of housing.
2022-05-25
New Zealand Hikes Cash Rate by 50 Bps to 1.5%
The Reserve Bank of New Zealand raised its official cash rate (OCR) by 50 bps to 1.5% during the April meeting, compared with expectations of a 25 bps increase. This was the fourth straight rate hike, amid persistently high inflation. The board mentioned that annual CPI is expected to peak around 7% in H1 2022 and the ‘path of least regret’ is to increase the OCR by more now, rather than later, to head off rising inflation expectations. Policymakers added they will remain focused on ensuring that high consumer prices does not become embedded into longer-term expectations. Globally, economic activity continues to generate inflation pressures, amid ongoing supply issues driven by COVID-19. The Russian invasion of Ukraine has added to these challenges, causing prices of commodities and energy to spike. The board noted that the OCR is stimulatory at its current level. On home prices, they have fallen from their recent high and move towards a more sustainable level.
2022-04-13
RBNZ Hikes Cash Rate for 3rd Time, Flags Higher Peak
The Reserve Bank of New Zealand raised its official cash rate (OCR) by 25 basis points to 1.0% during the February meeting, as widely expected. This was the third consecutive rate hike that brings borrowing costs to pre-pandemic levels, amid soaring inflation and surging housing prices. The board mentioned that more monetary tightening was needed to cool a heated economy, adding the cash rate would reach 2.2% by the end of this year and 2.57% by March 2023, which is a more aggressive path than the 2.1% and 2.3% seen in November's projections. The committee also stated that it will commence the gradual reduction of its bond holdings under the Large Scale Asset Purchase (LSAP) programme through both bond maturities and managed sales. That said, policymakers acknowledged that the spread of the Omicron COVID-19 variant would further disrupt economic activity and weigh on consumer and investor confidence in the near term.
2022-02-23