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 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 - 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, December 18, 2014.


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.

Statement issued by Reserve Bank Governor Graeme Wheeler:

New Zealand’s economic growth is running at an annual rate of around 3½ percent. While dairy prices have declined sharply, domestic demand has retained momentum, supported by the ongoing growth in consumption and construction activity. Interest rates are low by historical standards and continue to support domestic demand. The exchange rate does not reflect the decline in export prices this year and remains unjustifiably and unsustainably high. We expect to see a further significant depreciation.

CPI inflation remains modest, at 1 percent in the year to September. Weak global inflation, falls in international oil prices and the high exchange rate are the main influences. Inflation in the non-tradeables sector remains subdued with capacity pressures having less impact than usual.

Growth is expected to remain at or above trend through 2016, with unemployment continuing to decline. Modest inflation pressures suggest the expansion can be sustained for longer than previously expected with a more gradual increase in interest rates. Underpinning this, the economy’s productive capacity is being boosted by high labour force participation, strong net immigration and continued investment growth.

Risks to the growth outlook include dairy prices, which are expected to recover in 2015, the overvalued exchange rate, and the strength of construction activity. Inflation risks include the impact of rising capacity pressures on domestic inflation, the response of house prices to the strong migration inflows, and the impact of lower oil prices.

With output projected to grow at or above capacity, CPI inflation is expected to approach the 2 percent midpoint of the Reserve Bank’s target range in the latter part of the forecast period. Some further increase in the OCR is expected to be required at a later stage.

Reserve Bank of New Zealand | Carolina Cunha | carolina.cunha@tradingeconomics.com
12/10/2014 8:39:40 PM


Recent Releases

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

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. Published on 2014-09-10


Calendar GMT Event Actual Previous Consensus Forecast (i)
2014-09-10 10:00 PM
Interest Rate Decision 
3.5% 3.5% 3.5% 3.5%
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%
2015-01-29 08:00 PM
Interest Rate Decision 
3.5%
2015-03-12 08:00 PM
Interest Rate Decision 
3.5%
2015-04-23 10:00 PM
Interest Rate Decision 
3.25%


New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 3.50 3.50 67.32 2.50 percent [+]
Interbank Rate 3.90 3.81 24.25 2.70 percent [+]
Money Supply M0 5103.00 4958.00 5463.00 1081.00 NZD Million [+]
Money Supply M1 38895.00 38864.00 40367.00 1585.70 NZD Million [+]
Money Supply M2 125227.00 125557.00 125557.00 19760.00 NZD Million [+]
Money Supply M3 278850.00 277780.00 278850.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 23324.00 23090.00 28237.00 1029.50 NZD Million [+]
Banks Balance Sheet 421428.00 422638.00 424602.00 236047.00 NZD Million [+]
Central Bank Balance Sheet 25104.00 24590.00 33766.00 7116.00 NZD Million [+]


Interest Rate Reference Previous Highest Lowest Unit
Australia 2.50 Dec/14 2.50 17.50 2.50 percent [+]
Brazil 11.75 Dec/14 11.25 45.00 7.25 percent [+]
Canada 1.00 Dec/14 1.00 16.00 0.25 percent [+]
China 5.60 Nov/14 6.00 10.98 5.31 percent [+]
Euro Area 0.05 Dec/14 0.05 4.75 0.05 percent [+]
France 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Germany 0.05 Dec/14 0.05 4.75 0.05 percent [+]
India 8.00 Dec/14 8.00 14.50 4.25 percent [+]
Indonesia 7.75 Dec/14 7.75 12.75 5.75 percent [+]
Italy 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Japan 0.00 Nov/14 0.00 9.00 0.00 percent [+]
Mexico 3.00 Dec/14 3.00 9.25 3.00 percent [+]
Netherlands 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Russia 17.00 Dec/14 9.50 17.00 5.00 percent [+]
South Korea 2.00 Dec/14 2.00 5.25 2.00 percent [+]
Spain 0.05 Dec/14 0.05 4.75 0.05 percent [+]
Switzerland 0.00 Dec/14 0.00 3.50 0.00 percent [+]
Turkey 8.25 Nov/14 8.25 500.00 4.50 percent [+]
United Kingdom 0.50 Dec/14 0.50 17.00 0.50 percent [+]
United States 0.25 Dec/14 0.25 20.00 0.25 percent [+]