New Zealand Interest Rate 1985-2015 | Data | Chart | Calendar | Forecast

The benchmark interest rate in New Zealand was last recorded at 3.50 percent. Interest Rate in New Zealand averaged 7.97 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.

      Forecast    
New Zealand Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
3.50 3.50 67.32 2.50 1985 - 2015 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, March 5, 2015.


RBNZ Keeps Interest Rate Unchanged at 3.5%


The Reserve Bank of New Zealand left the official cash rate unchanged at 3.5 percent on January 28th.

Statement issued by Reserve Bank Governor Graeme Wheeler:

Trading partner growth in 2015 is expected to be similar to 2014, though the outlook is weaker than anticipated last year. Divergences continue among regions, with growth in China, Japan and the euro area easing in recent quarters, while growth in the US has remained robust.

World oil prices have fallen 60 percent since June last year, which will boost spending power in oil importing economies but reduce incomes for oil exporters. The oil price decline, together with uncertainties around the transition of US monetary policy, has led to an increase in financial market volatility.

The lower oil price will have a significant impact on prices and activity in New Zealand. The most direct and immediate effects are through fuel prices, with the price of regular petrol falling from a national average of $2.23 in mid-2014 to $1.73 currently. This will increase households’ purchasing power and lower the cost of doing business.

Annual economic growth in New Zealand is above 3 percent, supported by rising construction activity and household incomes. The housing market is showing signs of picking up, particularly in Auckland. However, fiscal consolidation, the reduced dairy payout, the risk of drought, and the high exchange rate will weigh on growth.

While the New Zealand dollar has eased recently, we believe the exchange rate remains unjustified in terms of current economic conditions, particularly export prices, and unsustainable in terms of New Zealand’s long-term economic fundamentals. We expect to see a further significant depreciation.

The high exchange rate, low global inflation, and falling oil prices are causing traded goods inflation to be very weak. Non-tradables inflation remains moderate, despite buoyant domestic demand and an improving labour market. Headline annual inflation is expected to be below the target band through 2015, and could become negative for a period before moving back towards 2 percent, albeit more gradually than previously anticipated.

In the current circumstances, we expect to keep the OCR on hold for some time. Future interest rate adjustments, either up or down, will depend on the emerging flow of economic data.

RBNZ | anna@tradingeconomics.com
1/28/2015 8:03:59 PM


Recent Releases

New Zealand Leaves Monetary Policy Unchanged
The Reserve Bank of New Zealand left the official cash rate on hold at 3.5 percent at its December 10th meeting, as widely expected, citing softer growth, low inflation pressures and global uncertainty. Yet, policymakers said that further rate hikes would be needed at a later stage. Published on 2014-12-10

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. Published on 2014-10-29


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-10-29 08:00 PM
Interest Rate Decision 
3.5% 3.5% 3.5% 3.5%
2014-12-10 08:00 PM
Interest Rate Decision 
3.5% 3.5% 3.5% 3.5%
2015-01-28 08:00 PM
Interest Rate Decision 
3.5% 3.5% 3.5% 3.5%
2015-03-11 08:00 PM
Interest Rate Decision 
3.5% 3.5%
2015-04-29 10:00 PM
Interest Rate Decision 
3.25%
2015-06-10 10:00 PM
Interest Rate Decision 
3.5%


New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 3.50 3.50 67.32 2.50 percent [+]
Interbank Rate 3.89 3.93 24.25 2.70 percent [+]
Money Supply M0 5325.00 5744.00 5744.00 1081.00 NZD Million [+]
Money Supply M1 39509.00 42359.00 42359.00 1585.70 NZD Million [+]
Money Supply M2 131590.00 131431.00 131650.00 19760.00 NZD Million [+]
Money Supply M3 283745.00 283086.00 283745.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 25287.00 20259.00 28237.00 1029.50 NZD Million [+]
Banks Balance Sheet 421428.00 422638.00 424602.00 236047.00 NZD Million [+]
Central Bank Balance Sheet 28694.00 22472.00 33766.00 7116.00 NZD Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.25 Mar/15 2.25 17.50 2.25 percent [+]
Brazil 12.75 Mar/15 12.25 45.00 7.25 percent [+]
Canada 0.75 Mar/15 0.75 16.00 0.25 percent [+]
China 5.35 Mar/15 5.60 10.98 5.31 percent [+]
Euro Area 0.05 Mar/15 0.05 4.75 0.05 percent [+]
France 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Germany 0.05 Jan/15 0.05 4.75 0.05 percent [+]
India 7.50 Mar/15 7.75 14.50 4.25 percent [+]
Indonesia 7.50 Feb/15 7.75 12.75 5.75 percent [+]
Italy 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Japan 0.00 Feb/15 0.00 9.00 0.00 percent [+]
Mexico 3.00 Jan/15 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Russia 15.00 Jan/15 17.00 17.00 5.00 percent [+]
South Korea 2.00 Feb/15 2.00 5.25 2.00 percent [+]
Spain 0.05 Jan/15 0.05 4.75 0.05 percent [+]
Switzerland -0.75 Jan/15 -0.25 3.50 -0.75 percent [+]
Turkey 7.50 Feb/15 7.75 500.00 4.50 percent [+]
United Kingdom 0.50 Mar/15 0.50 17.00 0.50 percent [+]
United States 0.25 Jan/15 0.25 20.00 0.25 percent [+]