New Zealand Interest Rate

The benchmark interest rate in New Zealand was last recorded at 3 percent. Interest Rate in New Zealand is reported by the Reserve Bank of New Zealand. Interest Rate in New Zealand averaged 8.07 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. 2014-04-23

Actual Previous Highest Lowest Forecast Dates Unit Frequency
3.00 2.75 67.32 2.50 2.75 | 2014/06 1985 - 2014 Percent Monthly

TO

New Zealand Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
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
3.0% 2.75% 3.0% 3%
2014-06-11 10:00 PM New Zealand
Interest Rate Decision
3.0% 2.75%
[+]

Money Last Previous Highest Lowest Forecast Unit
Foreign Exchange Reserves 21805.00 2014-02-28 22550.00 28237.00 1029.50 22605.88 2014-06-30 NZD Million [+]
Interbank Rate 3.18 2014-03-31 3.05 24.25 2.70 3.25 2014-06-30 Percent [+]
Money Supply M0 4964.00 2014-02-28 4989.00 5463.00 1081.00 4940.50 2014-06-30 NZD Million [+]
Money Supply M1 38612.00 2014-02-28 37884.00 39881.00 1585.70 40147.83 2014-06-30 NZD Million [+]
Money Supply M2 120196.00 2014-02-28 118096.00 120196.00 19760.00 125180.86 2014-06-30 NZD Million [+]
Money Supply M3 271975.00 2014-02-28 269136.00 271975.00 6726.00 276673.14 2014-06-30 NZD Million [+]
Interest Rate 3.00 2014-04-23 2.75 67.32 2.50 2.75 2014-06-30 Percent [+]
[+]


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

RECENT RELEASES

New Zealand Central Bank Holds Rates
The Reserve Bank of New Zealand left its benchmark cash rate unchanged at a record low 2.5 percent on January 29th, but said higher rates are likely in the near future to fight inflation pressures from the housing and building sectors. Published on 2014-01-29

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.


RELATED NEWS

New Zealand Inflation Rate Slows in Q1  
The CPI increased 1.5 percent in the year to the March 2014 quarter, following a 1.6 percent increase in the year to the December 2013 quarter. About half of the annual increase came from housing and household utility prices, which increased 3.3 percent.
New Zealand Posts Trade Surplus in February  
The trade balance for February of 2014 was a surplus of $818 million. This is the highest-ever trade surplus for any February month and compares with a surplus of $432 million in February 2013. The rise in dairy exports was supported by logs and meat, with much of the increase in these commodities destined for China.
New Zealand GDP Growth Slows in Q4  
New Zealand economy advanced 0.9 percent in the last quarter of 2013, slowing from a revised 1.2 percent in the previous three-month period. Strong growth in manufacturing was not enough to offset a drop in architectural and engineering services and a fall in dairy and livestock production.
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.
New Zealand Repots Highest Trade Surplus On Record for January  
New Zealand reported a trade surplus for the third consecutive month in January as the country's dairy exports to China hit a record high.
New Zealand Unemployment Rate Falls in Q4 2013  
In the fourth quarter of 2013, New Zealand jobless rate decreased to 6 percent from 6.2 percent in the previous quarter. There were 24,000 more people employed, following an additional 28,000 in the September quarter.
China Becomes New Zealand’s Top Export Partner in 2013  
In December of 2013, New Zealand trade balance turned into a NZD 523 million surplus for the second straight monht. For the December 2013 year, there was a trade deficit of NZD 259 million (0.5 percent of exports), up from an average deficit of 2.5 percent of exports over the previous five December years. China became the country’s top export destination for the first time, due to exports of milk powder.
New Zealand Central Bank Holds Rates  
The Reserve Bank of New Zealand left its benchmark cash rate unchanged at a record low 2.5 percent on January 29th, but said higher rates are likely in the near future to fight inflation pressures from the housing and building sectors.
New Zealand Inflation Rate Edges Up to 1.6% in Q4 2013  
In the fourth quarter of 2013, New Zealand inflation rate accelerated to an annual 1.6 percent, the highest annual rise since the March 2012 quarter.
New Zealand Posts Trade Surplus in November  
In November of 2013, New Zealand trade balance turned into a NZD 183 million surplus. This is the first trade surplus for a November month since 1991 and follows a trade deficit in October 2013, which was the lowest deficit for an October month since the mid-1990s. For the first time, China has surpassed Australia as New Zealand’s top goods export destination on an annual basis.
MORE RELATED NEWS

LATEST NEWS

US New Home Sales Fall Sharply in March  
Sales of new single-family houses dropped 14.5 percent in March of 2014 to their lowest level in eight months. Sales were recorded at a seasonally adjusted annual rate of 384,000, below the revised February rate of 449,000.
US Markit Manufacturing PMI Steady in April  
At 55.4 in April, the Markit Flash U.S. Manufacturing PMI was down fractionally from 55.5 in March, but still well above the neutral 50.0 value. Sharper rates of output and new business growth boosted the Manufacturing PMI during April, while the main negative influence on the headline index was a rise in the suppliers’ delivery times component.
Bank of Thailand Leaves Interest Rate Unchanged  
At its April 23rd, 2014 meeting, the Monetary Policy Committee left the benchmark interest rate on hold at 2.0 percent. Policymakers expect 2014 growth to be lower than previous assessed due to prolonged political unrest.
South Africa Inflation Rate Back to 6%  
South African annual consumer prices accelerated for the fourth straight month in March of 2014 to a six-month high 6 percent. On a monthly basis, prices advanced 1.3 percent, the fastest pace in five years.
Singapore Inflation Rate Edges Up in March  
Annual consumer prices rose 1.2 percent in March of 2014, up from a 0.4 percent increase in February, mainly due to a smaller fall in car prices. Contributions from all other major categories, except accommodation, were also slightly higher.
Australia Inflation Rate Accelerates Further in Q1  
Australian annual consumer prices advanced 2.9 percent in the first three months of 2014, up from 2.7 percent in the previous quarter, but below market forecasts. The rise was driven by seasonal increases in cost of healthcare, transport and school fees, and by a large hike in tobacco duties.
Mexico Unemployment Rate Up to 4.8% in March  
Mexican unadjusted jobless rate rose to 4.8 percent in March of 2014, up from 4.65 percent in February and 4.51 percent a year earlier. Upon seasonal adjustment, the unemployment rate rose to its highest in more than one year to 5.25 percent.
Hong Kong Unemployment Rate Unchanged in March  
Hong Kong’ seasonally adjusted jobless rate remained steady at 3.1 percent for the third consecutive period in January to March of 2014, down from 3.5 percent a year earlier.
Hong Kong Inflation Rate Unchanged in March  
Hong Kong annual consumer prices rose 3.9 percent in March of 2014, the same rate recorded in February. In the first quarter of 2014, the inflation rate rose by 4.2 percent over a year earlier. The corresponding increase after netting out the effects of all Government's one-off relief measures was 3.8 percent.
China Cuts Reserve Ratio for Rural Banks  
The People's Bank of China decided to cut the reserve requirement ratio by 2 percentage points for rural commercial banks and by 0.5 percentage point for rural credit cooperatives, aiming to stimulate growth in some parts of the country. The cut will be effective from April 25th, 2014.
MORE TOP NEWS

OVERVIEW    |     WORLBANK    |     [+] Calendar    |     [+] Countries    |     [+] Indicators    |     News