New Zealand Interest Rate 1985-2014 | Data | Chart | Calendar | Forecast

The benchmark interest rate in New Zealand was last recorded at 3.50 percent. Interest Rate in New Zealand averaged 8.03 Percent from 1985 until 2014, reaching an all time high of 67.32 Percent in March of 1985 and a record low of 2.50 Percent in April of 2009. Interest Rate in New Zealand is reported by the Reserve Bank of New Zealand.


New Zealand Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
3.50 3.50 67.32 2.50 1985 - 2014 Percent Daily
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. Content for - New Zealand Interest Rate - was last refreshed on Friday, October 31, 2014.

New Zealand Leaves Rate on Hold

The Reserve Bank of New Zealand left the official cash rate unchanged at 3.5 percent at its October meeting as widely expected, saying the economy is adjusting to previous monetary policy tightening.

Statement by Reserve Bank Governor Graeme Wheeler:

The global economy is growing at a moderate rate although recent data suggests some softening in the major economies, apart from the United States. Monetary policy is expected to remain supportive for longer in all the major economies.

Growth in the New Zealand economy has been faster than trend over 2014, reducing unemployment and adding to demands on productive capacity. Strong construction sector activity, high net immigration, and interest rates, which remain low by historic standards, continue to support the expansion. Output growth is expected to moderate over coming years, towards a more sustainable rate.

Lower commodity prices and increased global financial market volatility have taken some pressure off the New Zealand dollar. However, its current level remains unjustified and unsustainable and continues to constrain growth in the tradables sector. We expect a further significant depreciation.

CPI inflation remains modest, and was 1 percent in the year to September. Contributing factors are subdued wage inflation, well-anchored inflation expectations, weak global inflation, falls in oil prices, and the high New Zealand dollar. House price inflation has fallen significantly since late-2013, in part due to interest rate increases and the LVR restrictions.

The economy appears to be adjusting to the policy measures undertaken by the Bank over the past year. CPI inflation is currently at a low level despite above-trend growth. However, inflation is expected to increase as the expansion continues. A period of assessment remains appropriate before considering further policy adjustment.

Reserve Bank of New Zealand | Joana Taborda |
10/29/2014 8:08:57 PM

Recent Releases

New Zealand Leaves Monetary Policy Unchanged
At its September meeting, Reserve Bank of New Zealand left the official cash rate unchanged at 3.5 percent, aiming to better assess the moderating effects of the recent policy tightening and export price reductions. Published on 2014-09-10

New Zealand Raises Rate for 4th Straight Meeting
At its July meeting, Reserve Bank of New Zealand raised the official cash rate by 25 bps to 3.5 percent aiming to keep future inflation near the 2 percent target. The central bank increased the benchmark rate four times this year taking it up by 100 bps, but signalled the rate-hike campaign would pause to let the economy adjust to monetary policy tightening. Published on 2014-07-24

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-06-11 10:00 PM New Zealand
Interest Rate Decision
3.25% 3.0% 3.25% 3%
2014-07-23 10:00 PM New Zealand
Interest Rate Decision
3.50% 3.25% 3.5% 3.5%
2014-09-10 10:00 PM New Zealand
Interest Rate Decision
3.5% 3.5% 3.5% 3.5%
2014-10-29 08:00 PM New Zealand
Interest Rate Decision
3.5% 3.5% 3.5% 3.5%
2014-12-10 08:00 PM New Zealand
Interest Rate Decision
3.5% 3.5%

New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 3.50 3.50 67.32 2.50 Percent [+]
Interbank Rate 3.87 3.87 24.25 2.70 Percent [+]
Money Supply M0 4918.00 4869.00 5463.00 1081.00 NZD Million [+]
Money Supply M1 37262.00 38696.00 40367.00 1585.70 NZD Million [+]
Money Supply M2 122669.00 123260.00 124139.00 19760.00 NZD Million [+]
Money Supply M3 275999.00 274872.00 275999.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 23090.00 22487.00 28237.00 1029.50 NZD Million [+]
Banks Balance Sheet 421428.00 422638.00 424602.00 236047.00 NZD Million [+]
Central Bank Balance Sheet 21768.00 22460.00 33766.00 7116.00 NZD Million [+]