The Reserve Bank of New Zealand held its official cash rate (OCR) at a record low of 0.25% on September 23rd 2020, as widely expected, and retained its large scale asset purchase (LSAP) programme at as much as NZD 100 billion. Policymakers said that the decision was necessary to further lower household and business borrowing rates in order to achieve the inflation and employment target. The Committee noted the possible need for further monetary stimulus and added that progress being made on the Bank’s ability to deploy additional monetary instruments, including a Funding for Lending Programme (FLP), a negative OCR and purchases of foreign assets. Policymakers mentioned that the FLP would be ready before the end of this calendar year, while the banking system is on track to be operationally prepared for negative interest rates by year end. The board also highlighted that a severe and prolonged economic downturn would make it difficult to achieve its inflation and employment objectives.
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 October of 2020. source: Reserve Bank of New Zealand
Interest Rate in New Zealand is expected to be 0.25 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, according to our econometric models.