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.

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New Zealand Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
3.50 3.25 67.32 2.50 1985 - 2014 Percent Monthly
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, August 21, 2014.

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.

Statement by Graeme Wheeler, Governor:

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 financial market volatility. Economic growth among New Zealand’s trading partners has eased slightly in the first half of 2014, but this appears to be due to temporary factors.

Construction, particularly in Canterbury, is growing strongly. At the same time, strong net immigration is adding to housing and household demand, although house price inflation has moderated further since the June Statement.

Over recent months, export prices for dairy and timber have fallen, and these will reduce primary sector incomes over the coming year. With the exchange rate yet to adjust to weakening commodity prices, the level of the New Zealand dollar is unjustified and unsustainable and there is potential for a significant fall.

Inflation remains moderate, but strong growth in output has been absorbing spare capacity. This is expected to add to non-tradables inflation. Wage inflation is subdued, reflecting recent low inflation outcomes, increased labour force participation, and strong net immigration.

It is important that inflation expectations remain contained. Today’s move will help keep future average inflation near the 2 percent target mid-point and ensure that the economic expansion can be sustained. Encouragingly, the economy appears to be adjusting to the monetary policy tightening that has taken place since the start of the year. It is prudent that there now be a period of assessment before interest rates adjust further towards a more-neutral level.

The speed and extent to which the OCR will need to rise will depend on the assessment of the impact of the tightening in monetary policy to date, and the implications of future economic and financial data for inflationary pressures.

Reserve Bank New Zealand | Joana Taborda |
7/24/2014 12:18:01 AM

Recent Releases

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

Reserve Bank of New Zealand Increases Interest Rate to 3.0%
At its April 23rd, 2014 meeting, the Reserve Bank of New Zealand lifted the benchmark interest rate for the second straight meeting by 25 bps to 3.0 percent, as inflationary pressures were increasing and were expected to continue doing so over the next two years. Published on 2014-04-23

Calendar GMT Country Event Reference Actual Previous Consensus Forecast
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
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% 3.75%

Money Last Previous Highest Lowest Unit
Interest Rate 3.50 3.25 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 [+]

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