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. Interest Rate in New Zealand averaged 7.36 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.
Interest Rate in New Zealand is expected to be 1.50 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 1.25 in 12 months time. In the long-term, the New Zealand Interest Rate is projected to trend around 1.75 percent in 2020, according to our econometric models.