The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1.75 percent on 13th February 2019, as widely expected. Policymakers said that low interest rate support domestic economic growth and inflation, and highlighted that the tailwind from a slowing global economy may reduce demand for New Zealand's exports. The Committee noted that the inflation rate is near the 2 percent target rate, mostly due to cost of petrol and to keep inflation close to target, the economy needs continued support from monetary policy. Policymakers added that rates will remain at this level through 2019 and 2020 and that the direction of the next move could be up or down. Interest Rate in New Zealand averaged 7.36 percent from 1985 until 2018, reaching an all time high of 67.32 percent in March of 1985 and a record low of 1.75 percent in November of 2016.

Interest Rate in New Zealand is expected to be 1.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in New Zealand to stand at 1.75 in 12 months time. In the long-term, the New Zealand Interest Rate is projected to trend around 3.25 percent in 2020, according to our econometric models.

New Zealand Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-08-08 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-09-26 09:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2018-11-07 08:00 PM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-02-13 01:00 AM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-03-27 01:00 AM Interest Rate Decision 1.75% 1.75%
2019-03-27 02:00 AM RBNZ Press Conference
2019-05-08 02:00 AM Interest Rate Decision 1.75%



New Zealand Holds Rates at Record Low of 1.75%

The Reserve Bank of New Zealand left its official cash rate/OCR unchanged at a record low of 1.75 percent on 13th February 2019, as widely expected. Policymakers said that low interest rate support domestic economic growth and inflation, and highlighted that the tailwind from a slowing global economy may reduce demand for New Zealand's exports. The Committee noted that the inflation rate is near the 2 percent target rate, mostly due to cost of petrol and to keep inflation close to target, the economy needs continued support from monetary policy. Policymakers added that rates will remain at this level through 2019 and 2020 and that the direction of the next move could be up or down.

Statement by the Central Bank of New Zealand:

The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and 2020. The direction of our next OCR move could be up or down.

Employment is near its maximum sustainable level. However, core consumer price inflation remains below our 2 percent target mid-point, necessitating continued supportive monetary policy.

Trading-partner growth is expected to further moderate in 2019 and global commodity prices have already softened, reducing the tailwind that New Zealand economic activity has benefited from. The risk of a sharper downturn in trading-partner growth has also heightened over recent months.

Despite the weaker global impetus, we expect low interest rates and government spending to support a pick-up in New Zealand’s GDP growth over 2019. Low interest rates, and continued employment growth, should support household spending and business investment. Government spending on infrastructure and housing also supports domestic demand.

As capacity pressures build, consumer price inflation is expected to rise to around the mid-point of our target range at 2 percent.

There are upside and downside risks to this outlook. A more pronounced global downturn could weigh on domestic demand, but inflation could rise faster if firms pass on cost increases to prices to a greater extent.

We will keep the OCR at an expansionary level for a considerable period to contribute to maximising sustainable employment, and maintaining low and stable inflation.



RBNZ l Rida Husna | rida@tradingeconomics.com
2/13/2019 4:12:59 AM



New Zealand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 67.32 1.75 percent [+]
Interbank Rate 1.95 2.10 24.25 1.95 percent [+]
Money Supply M0 6719.00 6805.00 213058.00 1081.00 NZD Million [+]
Money Supply M1 68630.00 71855.00 71855.00 1585.70 NZD Million [+]
Money Supply M3 307559.00 311406.00 311406.00 6726.00 NZD Million [+]
Foreign Exchange Reserves 29534.00 26300.00 32785.00 1029.50 NZD Million [+]
Banks Balance Sheet 548919.00 546469.00 548919.00 236047.00 NZD Million [+]
Deposit Interest Rate 3.20 3.80 16.32 3.20 percent [+]
Loans To Private Sector 113028.00 113177.00 113177.00 34958.00 NZD Million [+]
Central Bank Balance Sheet 36050.00 34088.00 36050.00 7116.00 NZD Million [+]


New Zealand Interest Rate

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. New Zealand Interest Rate - actual data, historical chart and calendar of releases - was last updated on March of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 67.32 1.75 1985 - 2019 percent Daily




Country Last Previous
Argentina 63.87 Mar/19
Turkey 24.00 Mar/19
Mexico 8.25 Feb/19
Russia 7.75 Feb/19
South Africa 6.75 Feb/19
Brazil 6.50 Mar/19
India 6.25 Feb/19
Indonesia 6.00 Mar/19
China 4.35 Feb/19
Saudi Arabia 3.00 Feb/19
United States 2.50 Mar/19
Canada 1.75 Mar/19
South Korea 1.75 Feb/19
Singapore 1.66 Feb/19
Australia 1.50 Mar/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Mar/19
France 0.00 Mar/19
Germany 0.00 Mar/19
Italy 0.00 Mar/19
Netherlands 0.00 Mar/19
Spain 0.00 Mar/19
Japan -0.10 Mar/19
Switzerland -0.75 Mar/19


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