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 Thursday, October 23, 2014.

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.

Statement issued by Reserve Bank Governor Graeme Wheeler:

New Zealand’s economy is expected to grow at an annual pace of 3.7 percent over 2014. Global financial conditions remain very accommodative and are reflected in low interest rates, narrow risk spreads, and low volatility across a range of asset markets. Accommodative financial conditions are supporting a moderate rate of global growth, albeit uneven across regions.

New Zealand’s economic growth continues to be supported by increasing construction activity and ongoing strength in consumption and business investment. A high level of net immigration is adding to domestic demand as well as productive capacity. Economic growth is projected to moderate in response to recent commodity price declines and the impact of policy tightening. The high exchange rate continues to restrain growth in the traded sectors.

The exchange rate has yet to adjust materially to the lower commodity prices. Its current level remains unjustified and unsustainable. We expect a further significant depreciation, which should be reinforced as monetary policy in the US begins to normalise.

The economy appears to be adjusting to the policy measures taken by the Bank over the past year. House price inflation continues to ease, despite strong net immigration. CPI inflation remains moderate, reflecting subdued wage increases, well-anchored inflation expectations, weak global inflation, and the high New Zealand dollar. However, spare capacity is being absorbed, and annual non-tradables inflation is expected to increase. Risks also remain around how strongly net immigration will affect housing demand, and the extent to which pressures in the construction sector will impact broader inflation.

In light of these uncertainties, and in order to better assess the moderating effects of the recent policy tightening and export price reductions, it is prudent to undertake a period of monitoring and assessment before considering further policy adjustment. Nevertheless, we expect some further policy tightening will be necessary to keep future average inflation near the 2 percent target mid-point and ensure that the economic expansion can be sustained.

Reserve Bank New Zealand | Joana Taborda |
9/10/2014 10:10:57 PM

Recent Releases

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

New Zealand Raises Rate to 3.25%
At its June meeting, Reserve Bank of New Zealand decided to raise the official cash rate by 25 bps to 3.25 percent for the third straight meeting, as economic expansion has considerable momentum and inflationary pressures are expected to increase. Published on 2014-06-11

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-04-23 10:00 PM New Zealand
Interest Rate Decision
3.0% 2.75% 3.0% 3%
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% 3.75%

New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 3.50 3.50 67.32 2.50 Percent [+]
Interbank Rate 3.80 3.71 24.25 2.70 Percent [+]
Money Supply M0 4881.00 4932.00 5463.00 1081.00 NZD Million [+]
Money Supply M1 39183.00 39040.00 40367.00 1585.70 NZD Million [+]
Money Supply M2 122051.00 122711.00 124139.00 19760.00 NZD Million [+]
Money Supply M3 272500.00 272327.00 273350.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 21352.00 19631.00 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 [+]