The Reserve Bank of New Zealand raised its official cash rate (OCR) by 25 basis points to 0.75% in the final policy meeting of the year. It was the second consecutive rate hike, amid rising inflationary pressures, the relaxation of COVID-19 restrictions and surging housing prices. The board mentioned that further removal of monetary policy stimulus is expected over time given the medium-term outlook for inflation and employment. Inflation is projected to run above 5% for the next three quarters, peaking at 5.7% in Q1, due to higher oil prices, rising transport costs and supply shortfalls. In Q3, the country's consumer prices rose 4.9% yoy, well above the central bank's 1%-3% target. "The committee expected the OCR would need to be progressively increased and, conditional on the economy evolving as expected, it would likely need to be raised above its neutral rate," it added. The central bank signaled the cash rate to reach 2.6% by end of 2023 and go higher by December 2024. source: Reserve Bank of New Zealand
Interest Rate in New Zealand averaged 6.87 percent from 1985 until 2021, 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 December of 2021.
Interest Rate in New Zealand is expected to be 0.75 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 1.75 percent in 2022 and 2.00 percent in 2023, according to our econometric models.