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.

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New Zealand Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.25 0.25 67.32 0.25 1985 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-05-13 02:00 AM Interest Rate Decision 0.25% 0.25% 0.25%
2020-06-24 02:00 AM Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-08-12 02:00 AM Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-09-23 02:00 AM Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2020-11-11 01:00 AM Interest Rate Decision 0.25%
2020-11-11 02:00 AM RBNZ Press Conference
2021-02-24 01:00 AM Interest Rate Decision 0.25%
2021-02-24 02:00 AM RBNZ Press Conference


News Stream
New Zealand Holds Rates, But Hints Further Easing
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.
2020-09-23
New Zealand Expands QE, Keeps Rate Unchanged
The Reserve Bank of New Zealand expanded its large scale asset purchase (LSAP) programme up to NZD 100 billion on August 12th, 2020, amid significant uncertainty due to the COVID-19 crisis, while holding its official cash rate/OCR steady at a record low of 0.25%, as widely expected. Policymakers warned that policy rates might have to go below zero as the country was plunged back into lockdown, adding that the economic risks remain to the downside. The board viewed that domestic economic activity remains below the level it was at prior to the outbreak, and that a sustainable recovery in investment and employment depends on both the degree to which the virus is contained effectively. The board noted that fiscal policy continues to provide the primary support to the economy, as it is appropriate given the pace and scale of the economic shock.
2020-08-12
New Zealand Holds Rates at Record Low of 0.25%
The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 0.25% on June 24th, 2020, as widely expected, and maintained its large scale asset purchase (LSAP) programme at NZD 60 billion. Policymakers said the balance of economic risks remains to the downside, despite a relaxation of social restrictions and an earlier resumption of domestic economic activity in the wake of the COVID-19 crisis. The central bank added it is prepared to provide additional stimulus as well as potentially expanding the large scale asset purchase programme and the use of more monetary policy tools as needed. The board agreed that the extent of the continued job losses and reduced activity remains uncertain, while noting that household and business confidence remains weak.
2020-06-24
New Zealand Holds Rates, Expands Quantitative Easing
The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 0.25% on May 13th 2020. Policymakers noted that the domestic economy deteriorated since the previous meeting due to the coronavirus pandemic and projected that the sharp contraction in activity will likely reduce inflation and employment below the Bank’s objectives for several years. The Committee also expanded the Large Scale Asset Purchase program potential to NZD 60 billion from the previous NZD 33 billion limits aiming to reduce further the cost of borrowing quickly. Policymakers said that a negative OCR will become an option in the future, although at present financial institutions are not yet operationally ready. The Committee added that it is prepared to use additional monetary policy tools if and when needed, including reducing the OCR further, additional types of assets to the LSAP program, and providing fixed-term loans to banks.
2020-05-13

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.