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.

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 July 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
2020-02-12 01:00 AM Interest Rate Decision 1% 1% 1% 1%
2020-03-15 07:00 PM Interest Rate Decision 0.25% 1% 0.75%
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%
2020-09-23 02:00 AM Interest Rate Decision 0.25% 0.25%
2020-09-23 03:00 AM RBNZ Press Conference
2020-11-11 01:00 AM Interest Rate Decision 0.25%
2020-11-11 02:00 AM RBNZ Press Conference


News Stream
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 Cuts Rate to 0.25% at Emergency Meeting
The Reserve Bank of New Zealand unexpectedly cut its official cash rate by 75bps to a record low of 0.25% in an emergency meeting on March 16th 2020, following peers around the world. Policymakers said that borrowing costs will remain at the current level for at least the next 12 months as the negative economic implications of the coronavirus pandemic continue to rise. The Committee added that if a further stimulus is required at some point, a Large Scale Asset Purchase programme of New Zealand government bonds would be preferable to more OCR reductions. Policymakers noted the significant negative impact of the coronavirus on the domestic economy and added that spending and investment will be subdued for an extended period. "The Government is operating an expansionary fiscal policy and has imminent intentions to increase its support with a fiscal package to provide both targeted and broad-based economic stimulus," the bank said in a statement.
2020-03-16
New Zealand Holds Rates, Sees Some Coronavirus Risks
The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1% on February 12th 2020, as widely expected. Policymakers said that low interest rates remain necessary to keep employment and inflation around the 2% mid-point of the target range. The Committee noted that the coronavirus outbreak is an emerging downside risk, and assumed its impact would be short-lived, with most of the impacts in the first half of the year. The board mentioned that soft momentum in economic growth had continued into early 2020, but it expected to accelerate over the second half of the year, driven by monetary and fiscal stimulus and the high terms of trade. Policymakers added that there are indications that household spending growth will increase. The Committee said that there is time to adjust monetary policy if the impact of the outbreak threatens the economy.
2020-02-12

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.