The Reserve Bank of New Zealand held its official cash rate (OCR) at a record low of 0.25% on February 24th, as widely expected, while retaining the large-scale asset purchase program at NZ$100 billion. The central bank said that the domestic economic outlook remains highly uncertain, determined in large part by any future health-related restrictions. This ongoing uncertainty is expected to constrain investment and household spending growth. Policymakers viewed the current levels of monetary stimulus were needed to meet its consumer price inflation and employment remit. On the pandemic front, the initiation of global COVID-19 vaccination programs is positive for economic activity. Members agreed that there remains a significant period before widespread immunity is achieved. The Committee reiterated that it remains prepared to provide more monetary stimulus if necessary and noted that the operational work to enable the OCR to be taken negative if required is now completed. source: Reserve Bank of New Zealand

Interest Rate in New Zealand averaged 7 percent from 1985 until 2021, reaching an all time high of 67.32 percent in March of 1985 and a record low of 0.25 percent in March of 2020. 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 February of 2021.

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 0.50 percent in 2022 and 0.75 percent in 2023, 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 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
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% 0.25% 0.25% 0.25%
2021-02-24 01:00 AM Interest Rate Decision 0.25% 0.25% 0.25% 0.25%
2021-04-14 01:00 AM Interest Rate Decision 0.25% 0.25%
2021-05-26 02:00 AM Interest Rate Decision 0.25%
2021-05-26 03:00 AM RBNZ Press Conference
2021-07-14 02:00 AM Interest Rate Decision 0.25%


News Stream
New Zealand Holds Rates
The Reserve Bank of New Zealand held its official cash rate (OCR) at a record low of 0.25% on February 24th, as widely expected, while retaining the large-scale asset purchase program at NZ$100 billion. The central bank said that the domestic economic outlook remains highly uncertain, determined in large part by any future health-related restrictions. This ongoing uncertainty is expected to constrain investment and household spending growth. Policymakers viewed the current levels of monetary stimulus were needed to meet its consumer price inflation and employment remit. On the pandemic front, the initiation of global COVID-19 vaccination programs is positive for economic activity. Members agreed that there remains a significant period before widespread immunity is achieved. The Committee reiterated that it remains prepared to provide more monetary stimulus if necessary and noted that the operational work to enable the OCR to be taken negative if required is now completed.
2021-02-24
Monetary Policy to Remain Stimulatory: RBNZ
Monetary policy in New Zealand will remain stimulatory for a long time to meet the consumer price inflation and employment remit, the country's central bank said in a briefing. It added that negative rates in the country are still under consideration while banks were on track to be operationally ready for such a scenario by year-end. The Reserve Bank of New Zealand governor Adrian Orr said policymakers expect the economy to fall into recession early next year, adding that they would provide additional stimulus through a new funding-for-lending programme to help ease funding costs for banks, starting from December. In a statement, the central bank said it had delayed the start of increases in bank capital requirements until 2022. It added that it would consult next month on whether to reintroduce limits on the amount of “high-risk lending” banks can make, amid growing concerns of a housing bubble in the country.
2020-11-11
New Zealand Holds Rates, Launches New Lending Tool
The Reserve Bank of New Zealand held its official cash rate (OCR) at a record low of 0.25% on November 11th 2020, as widely expected. The central bank said that additional stimulus would be provided to meet the consumer price inflation and employment remit through a Funding for Lending Programme (FLP), commencing in December. The FLP will reduce banks’ funding costs and lower interest rates. At the same time, policymakers retained the large scale asset purchase (LSAP) programme at NZ$100 billion. On the COVID-19 front, the board noted that recent news on vaccine developments is positive. However, there remains a long and uncertain lag before any widespread vaccine deployment may be achieved. The central bank viewed that monetary policy will need to remain stimulatory for a long time and that it must remain prepared to provide additional support if necessary.
2020-11-11
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 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.