New Zealand Interest Rate  1985-2017 | Data | Chart | Calendar | Forecast

The Reserve Bank of New Zealand kept its official cash rate unchanged at record low of 1.75 percent on May 10th, 2017, as widely expected. The central bank left the monetary rate unchanged for the fifth straight meeting. Policymakers underscored that GDP growth in the second half of last year was softer than expected. However, the monetary policy stance is still neutral, as consumer prices increased by 2.2 percent year-on-year in the first quarter of 2017, explained by a transitory upswing in petrol and food prices. The central bank also stated that monetary policy will remain accommodative for a considerable period, as numerous uncertainties remain and policy may need to adjust accordingly. Interest Rate in New Zealand averaged 7.62 percent from 1985 until 2017, 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.

New Zealand Interest Rate
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Calendar GMT Reference Actual Previous Consensus Forecast (i)
2017-02-08 08:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-03-22 08:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-05-10 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2017-05-30 09:00 PM RBNZ Financial Stability Report
2017-06-21 09:00 PM Interest Rate Decision 1.75% 1.75%
2017-08-09 09:00 PM Interest Rate Decision 1.75%




New Zealand Holds Key Rate At 1.75% For 5th Straight Meeting


The Reserve Bank of New Zealand kept its official cash rate unchanged at record low of 1.75 percent on May 10th, 2017, as widely expected. The central bank left the monetary rate unchanged for the fifth straight meeting. Policymakers underscored that GDP growth in the second half of last year was softer than expected. However, the monetary policy stance is still neutral, as consumer prices increased by 2.2 percent year-on-year in the first quarter of 2017, explained by a transitory upswing in petrol and food prices. The central bank also stated that monetary policy will remain accommodative for a considerable period, as numerous uncertainties remain and policy may need to adjust accordingly.

Statement by Reserve Bank Governor Graeme Wheeler:

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent.

Global economic growth has increased and become more broad-based over recent months. However, major challenges remain with on-going surplus capacity and extensive political uncertainty.

Stronger global demand has helped to raise commodity prices over the past year, which has led to some increase in headline inflation across New Zealand’s trading partners. However, the level of core inflation has generally remained low. Monetary policy is expected to remain stimulatory in the advanced economies, but less so going forward.

The trade-weighted exchange rate has fallen by around 5 percent since February, partly in response to global developments and reduced interest rate differentials. This is encouraging and, if sustained, will help to rebalance the growth outlook towards the tradables sector.

GDP growth in the second half of 2016 was weaker than expected. Nevertheless, the growth outlook remains positive, supported by on-going accommodative monetary policy, strong population growth, and high levels of household spending and construction activity.

House price inflation has moderated further, especially in Auckland. The slowing in house price inflation partly reflects loan-to-value ratio restrictions and tighter lending conditions. This moderation is projected to continue, although there is a risk of resurgence given the continuing imbalance between supply and demand.

The increase in headline inflation in the March quarter was mainly due to higher tradables inflation, particularly petrol and food prices. These effects are temporary and may lead to some variability in headline inflation over the year ahead. Non-tradables and wage inflation remain moderate but are expected to increase gradually. This will bring future headline inflation to the midpoint of the target band over the medium term. Longer-term inflation expectations remain well-anchored at around 2 percent.

Developments since the February Monetary Policy Statement on balance are considered to be neutral for the stance of monetary policy.

Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly.

Mario | mario@tradingeconomics.com
5/11/2017 4:00:51 AM



New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 67.32 1.75 percent [+]
Interbank Rate 2.26 2.23 24.25 2.23 percent [+]
Money Supply M0 5897.00 213058.00 213058.00 1081.00 NZD Million [+]
Money Supply M1 59856.00 58638.00 59856.00 1585.70 NZD Million [+]
Money Supply M2 150882.00 153357.00 155766.00 19760.00 NZD Million [+]
Money Supply M3 275412.00 271696.00 325467.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 26562.00 25666.00 28557.00 1029.50 NZD Million [+]
Banks Balance Sheet 510812.00 509232.00 510812.00 236047.00 NZD Million [+]
Deposit Interest Rate 3.20 3.80 16.32 3.20 percent [+]
Central Bank Balance Sheet 25464.00 26043.00 33766.00 7116.00 NZD Million [+]
Loans To Private Sector 103441.00 102634.00 103441.00 34958.00 NZD Million [+]


New Zealand Interest Rate Notes

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. New Zealand Interest Rate - actual data, historical chart and calendar of releases - was last updated on May of 2017.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 67.32 1.75 1985 - 2017 percent Daily



interest rate by Country

Last
Brazil 11.25 Apr/17
Russia 9.25 Apr/17
Turkey 8.00 Apr/17
Mexico 6.75 May/17
India 6.25 Apr/17
Indonesia 4.75 May/17
China 4.35 Apr/17
Australia 1.50 May/17
South Korea 1.25 Apr/17
United States 1.00 May/17
Canada 0.50 Apr/17
United Kingdom 0.25 May/17
Euro Area 0.00 May/17
France 0.00 May/17
Germany 0.00 May/17
Italy 0.00 May/17
Netherlands 0.00 May/17
Spain 0.00 May/17
Japan -0.10 Apr/17
Switzerland -0.75 May/17