The interest rate in New Zealand was kept unchanged at 1.75 percent on 7 November 2018. The bank underscored that it expects to keep the OCR at this level through 2019 and into 2020, expecting GDP growth to pick up over 2019 and pointing to trade tensions as significant risk for sentiment. Consumer prices increased 1.9 percent year-on-year in the third quarter of 2018 following a 1.5 percent increase in the previous quarter. The print came above consensus expectations (1.7 percent) and was the highest rate in four quarters. Interest Rate in New Zealand averaged 7.39 percent from 1985 until 2018, reaching an all time high of 67.32 percent in March of 1985 and a record low of 1.75 percent in November of 2016.

New Zealand Interest Rate
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New Zealand Leaves Interest Rate at 1.75%


The interest rate in New Zealand was kept unchanged at 1.75 percent on 7 November 2018. The bank underscored that it expects to keep the OCR at this level through 2019 and into 2020, expecting GDP growth to pick up over 2019 and pointing to trade tensions as significant risk for sentiment. Consumer prices increased 1.9 percent year-on-year in the third quarter of 2018 following a 1.5 percent increase in the previous quarter. The print came above consensus expectations (1.7 percent) and was the highest rate in four quarters.

Statement by the Central Bank of New Zealand:

The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020.

There are both upside and downside risks to our growth and inflation projections. As always, the timing and direction of any future OCR move remains data dependent.

The pick-up in GDP growth in the June quarter was partly due to temporary factors, and business surveys continue to suggest growth will be soft in the near term. Employment is around its maximum sustainable level. However, core consumer price inflation remains below our 2 percent target mid-point, necessitating continued supportive monetary policy.

GDP growth is expected to pick up over 2019. Monetary stimulus and population growth underpin household spending and business investment. Government spending on infrastructure and housing also supports domestic demand. The level of the New Zealand dollar exchange rate will support export earnings.

As capacity pressures build, core consumer price inflation is expected to rise to around the mid-point of our target range at 2 percent.

Downside risks to the growth outlook remain. Weak business sentiment could weigh on growth for longer. Trade tensions remain in some major economies, raising the risk that trade barriers increase and undermine global growth.

Upside risks to the inflation outlook also exist. Higher fuel prices are boosting near-term headline inflation.  We will look through this volatility as appropriate. Our projection assumes firms have limited pass through of higher costs into generalised consumer prices, and that longer-term inflation expectations remain anchored at our target.

We will keep the OCR at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation.



Mario | mario@tradingeconomics.com
11/7/2018 8:12:35 PM



Calendar GMT Actual Previous Consensus TEForecast
2018-08-08 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-09-26 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-11-07 08:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-11-27 08:00 PM RBNZ Financial Stability Report


New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 67.32 1.75 percent [+]
Interbank Rate 2.52 2.52 24.25 2.00 percent [+]
Money Supply M0 6443.00 6348.00 213058.00 1081.00 NZD Million [+]
Money Supply M1 67345.00 67697.00 67697.00 1585.70 NZD Million [+]
Money Supply M3 302781.00 301799.00 302781.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 27645.00 30634.00 32785.00 1029.50 NZD Million [+]
Banks Balance Sheet 546634.00 539610.00 546634.00 236047.00 NZD Million [+]
Deposit Interest Rate 3.20 3.80 16.32 3.20 percent [+]
Loans To Private Sector 110547.00 109919.00 110990.00 34958.00 NZD Million [+]
Central Bank Balance Sheet 28845.00 29606.00 33766.00 7116.00 NZD Million [+]


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. This page provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. New Zealand Interest Rate - actual data, historical chart and calendar of releases - was last updated on November of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 67.32 1.75 1985 - 2018 percent Daily




Country Last
Argentina 66.65 Nov/18
Turkey 24.00 Oct/18
Mexico 7.75 Oct/18
Russia 7.50 Oct/18
Brazil 6.50 Oct/18
India 6.50 Oct/18
South Africa 6.50 Oct/18
Indonesia 5.75 Oct/18
China 4.35 Oct/18
Saudi Arabia 2.75 Oct/18
United States 2.25 Nov/18
Canada 1.75 Oct/18
Australia 1.50 Nov/18
South Korea 1.50 Oct/18
Singapore 1.45 Oct/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Oct/18
France 0.00 Oct/18
Germany 0.00 Oct/18
Italy 0.00 Oct/18
Netherlands 0.00 Oct/18
Spain 0.00 Oct/18
Japan -0.10 Oct/18
Switzerland -0.75 Oct/18


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