The Reserve Bank of New Zealand raised its official cash rate (OCR) by 50 bps to 1.5% during the April meeting, compared with expectations of a 25 bps increase. This was the fourth straight rate hike, amid persistently high inflation. The board mentioned that annual CPI is expected to peak around 7% in H1 2022 and the ‘path of least regret’ is to increase the OCR by more now, rather than later, to head off rising inflation expectations. Policymakers added they will remain focused on ensuring that high consumer prices does not become embedded into longer-term expectations. Globally, economic activity continues to generate inflation pressures, amid ongoing supply issues driven by COVID-19. The Russian invasion of Ukraine has added to these challenges, causing prices of commodities and energy to spike. The board noted that the OCR is stimulatory at its current level. On home prices, they have fallen from their recent high and move towards a more sustainable level. source: Reserve Bank of New Zealand
Interest Rate in New Zealand averaged 6.84 percent from 1985 until 2022, reaching an all time high of 67.32 percent in March of 1985 and a record low of 0.25 percent in March of 2020. This page provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. New Zealand Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on May of 2022.
Interest Rate in New Zealand is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the New Zealand Interest Rate is projected to trend around 3.00 percent in 2023, according to our econometric models.