The Reserve Bank of New Zealand unexpectedly kept its official cash rate/OCR unchanged at a record low of 1 percent on November 13th 2019, surprising markets that expected a 25 bps rate cut. Policymakers said that economic developments do not warrant a change to the already stimulatory monetary setting at this time and that they will continue to monitor the evolution of the economy and remain prepared to act as required. The Committee added that interest rates will need to remain at low levels for a prolonged period to ensure inflation reaches the mid-point of the target range and employment remains around its maximum sustainable level. The OCR has been lowered few times from 1.75 percent to its current level this year after being on hold for over two years. 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. source: Reserve Bank of New Zealand

Interest Rate in New Zealand is expected to be 0.75 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 1.00 percent in 2020, according to our econometric models.

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New Zealand Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
1.00 1.00 67.32 1.00 1985 - 2019 percent Daily



Calendar GMT Actual Previous Consensus TEForecast
2019-06-26 02:00 AM 1.5% 1.5% 1.5% 1.5%
2019-08-07 02:00 AM 1% 1.5% 1.25% 1.25%
2019-09-25 02:00 AM 1% 1% 1% 1%
2019-11-13 01:00 AM 1% 1% 0.75% 0.75%
2020-02-12 01:00 AM 1% 0.75%


News Stream
2019-09-25
RBNZ Holds Rates, Signals More Stimulus If Needed
The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1 percent on September 25th 2019, as widely expected, and following a 25 bps cut in the previous meeting. Policymakers said there remains scope for more fiscal and monetary stimulus, if necessary, to support the economy and maintain inflation and employment objectives.

2019-08-07
RBNZ Cuts Rate to Fresh Record Low
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.

2019-06-26
New Zealand Holds Rates at 1.5%, Signals Further Cuts
The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1.5 percent at its June 2019 meeting, as widely expected. The move follows a 25 bps cut in the previous meeting. Policymakers said that a lower OCR may be needed over time given the downside risks around the inflation and employment outlook.

2019-05-08
New Zealand Cuts Rate to Fresh Record Low of 1.5%
The Reserve Bank of New Zealand lowered its official cash rate/OCR by 25 bps to a new record low of 1.5 percent at its May 2019 meeting, as widely expected. It was the first rate cut since November 2016, saying it is necessary to support the outlook for employment and inflation consistent with its policy remit amid slower global economic growth. Policymakers added that a lower path for the cash rate over the forecast period was appropriate and reflected the economic projections and the balance of risks.

2019-03-27
New Zealand Leaves Monetary Policy Unchanged
The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1.75 percent at its March 2019 meeting, as widely expected. Policymakers said that given the weaker global economic outlook, in particular amongst some key trading partners including Australia, Europe, and China, and reduced momentum in domestic spending, the more likely direction of the next OCR move is down. Policymakers also mentioned that as capacity pressures build, consumer price inflation is expected to increase to around the mid-point of the 2 percent target range.

2019-02-13
New Zealand Holds Rates at Record Low of 1.75%
The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1.75 percent on 13th February 2019, as widely expected. Policymakers said that low interest rate support domestic economic growth and inflation, and highlighted that the tailwind from a slowing global economy may reduce demand for New Zealand's exports. The Committee noted that the inflation rate is near the 2 percent target rate, mostly due to cost of petrol and to keep inflation close to target, the economy needs continued support from monetary policy. Policymakers added that rates will remain at this level through 2019 and 2020 and that the direction of the next move could be up or down.


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.

New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 1.00 1.00 67.32 1.00 percent [+]
Interbank Rate 1.53 1.25 24.25 1.25 percent [+]
Money Supply M0 7555.00 7086.00 213058.00 1081.00 NZD Million [+]
Money Supply M1 78758.00 76187.00 78758.00 1585.70 NZD Million [+]
Money Supply M3 324328.00 321673.00 324328.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 26458.00 28602.00 32785.00 1029.50 NZD Million [+]
Banks Balance Sheet 584096.00 588551.00 588551.00 236047.00 NZD Million [+]
Deposit Interest Rate 1.18 1.14 16.32 1.02 percent [+]
Loans To Private Sector 120038.00 118357.00 120038.00 34958.00 NZD Million [+]
Central Bank Balance Sheet 24599.00 25185.00 36050.00 7116.00 NZD Million [+]