The Reserve Bank of New Zealand lowered its official cash rate by 50bps to a fresh record low of 1 percent at its August 2019 meeting, while markets had forecast a smaller 25bps cut. This was the first rate cut since May, aiming to support inflation amid weakening global economic activity and ongoing trade tensions. Policymakers signaled further rate cuts could be possible. 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.
Interest Rate in New Zealand is expected to be 1.00 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 0.75 in 12 months time. In the long-term, the New Zealand Interest Rate is projected to trend around 1.25 percent in 2020, according to our econometric models.