New Zealand Interest Rate

The benchmark interest rate in New Zealand was last recorded at 2.75 percent. Interest Rate in New Zealand is reported by the Reserve Bank of New Zealand. Interest Rate in New Zealand averaged 8.08 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. 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. 2014-04-17

Actual Previous Highest Lowest Forecast Dates Unit Frequency
2.75 2.50 67.32 2.50 2.50 | 2014/04 1985 - 2014 Percent Monthly

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New Zealand Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-10-30 08:00 PM New Zealand
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2013-12-11 08:00 PM New Zealand
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-01-29 08:00 PM New Zealand
Interest Rate Decision
2.5% 2.5% 2.5% 2.5%
2014-03-12 08:00 PM New Zealand
Interest Rate Decision
2.75% 2.5% 2.75% 2.5%
2014-04-23 10:00 PM New Zealand
Interest Rate Decision
2.75% 3% 2.5%
2014-06-11 10:00 PM New Zealand
Interest Rate Decision
2.75%
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Money Last Previous Highest Lowest Forecast Unit
Foreign Exchange Reserves 21805.00 2014-02-28 22550.00 28237.00 1029.50 21960.52 2014-03-31 NZD Million [+]
Interbank Rate 3.18 2014-03-31 3.05 24.25 2.70 3.25 2014-04-30 Percent [+]
Money Supply M0 4964.00 2014-02-28 4989.00 5463.00 1081.00 5099.44 2014-03-31 NZD Million [+]
Money Supply M1 38612.00 2014-02-28 37884.00 39881.00 1585.70 40309.21 2014-03-31 NZD Million [+]
Money Supply M2 120196.00 2014-02-28 118096.00 120196.00 19760.00 122162.45 2014-03-31 NZD Million [+]
Money Supply M3 271975.00 2014-02-28 269136.00 271975.00 6726.00 273069.06 2014-03-31 NZD Million [+]
Interest Rate 2.75 2014-03-12 2.50 67.32 2.50 2.50 2014-04-30 Percent [+]
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New Zealand Raises Rate to 2.75%

Reserve Bank of New Zealand increased its key interest rate by 25 bps to 2.75 percent, aiming to contain inflationary expectations from the housing and non-tradables sectors. The central bank hinted future rate hikes, depending on growth and future price pressures.

Statement issued by Reserve Bank Governor Graeme Wheeler:

New Zealand’s economic expansion has considerable momentum, and growth is becoming more broad-based. GDP is estimated to have grown by 3.3 percent in the year to March. Growth is gradually increasing in New Zealand’s trading partners. However, improvements in major economies have required exceptional support from monetary policy. Global financial conditions continue to be very accommodating, with bond yields in most advanced countries low and equity markets performing strongly.
 
Prices for New Zealand’s export commodities remain very high, and especially for dairy. Domestically, the extended period of low interest rates and continued strong growth in construction sector activity have supported recovery. A rapid increase in net immigration over the past 18 months has also boosted housing and consumer demand. Confidence is very high among consumers and businesses, and hiring and investment intentions continue to increase.
 
Growth in demand has been absorbing spare capacity, and inflationary pressures are becoming apparent, especially in the non-tradables sector. In the tradables sector, weak import price inflation and the high exchange rate have held down inflation. The high exchange rate remains a headwind to the tradables sector. The Bank does not believe the current level of the exchange rate is sustainable in the long run.
 
There has been some moderation in the housing market. Restrictions on high loan-to-value ratio mortgage lending are starting to ease pressure, and rising interest rates will have a further moderating influence. However, the increase in net immigration flows will remain an offsetting influence.
 
While headline inflation has been moderate, inflationary pressures are increasing and are expected to continue doing so over the next two years. In this environment it is important that inflation expectations remain contained. To achieve this it is necessary to raise interest rates towards a level at which they are no longer adding to demand. The Bank is commencing this adjustment today. The speed and extent to which the OCR will be raised will depend on economic data and our continuing assessment of emerging inflationary pressures.

By increasing the OCR as needed to keep future average inflation near the 2 percent target mid-point, the Bank is seeking to ensure that the economic expansion can be sustained.

Reserve Bank New Zealand | Joana Taborda | joana.taborda@tradingeconomics.com
3/13/2014 12:42:06 AM

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New Zealand Leaves Rate on Hold in December
In its December meeting, Reserve Bank of New Zealand left the official cash rate unchanged at 2.5 percent, as widely expected. Yet, the improving economy and rising inflation points to interest rates hikes next year. Published on 2013-12-12


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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