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.

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New Zealand Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2021-11-24 01:00 AM RBNZ Interest Rate Decision 0.75% 0.5% 0.75% 0.75%
2022-02-23 01:00 AM RBNZ Interest Rate Decision 1.0% 0.75% 1% 1%
2022-04-13 02:00 AM RBNZ Interest Rate Decision 1.5% 1% 1.25% 1.25%
2022-05-25 02:00 AM RBNZ Interest Rate Decision 1.5%
2022-05-25 03:00 AM RBNZ Press Conference
2022-07-13 02:00 AM RBNZ Interest Rate Decision


Related Last Previous Unit Reference
Interest Rate 1.50 1.00 percent Apr 2022
Money Supply M0 9087.00 9020.00 NZD Million Apr 2022
Money Supply M1 140155.00 136841.00 NZD Million Mar 2022
Interbank Rate 1.53 1.25 percent Sep 2019
Money Supply M2 150882.00 153357.00 NZD Million Jan 2017
Money Supply M3 390385.00 386923.00 NZD Million Mar 2022
Foreign Exchange Reserves 18237.00 23259.00 NZD Million Apr 2022
Banks Balance Sheet 666714.00 658614.00 NZD Million Mar 2022
Deposit Interest Rate 1.59 1.51 percent May 2022
Central Bank Balance Sheet 89480.00 91457.00 NZD Million Apr 2022
Loans To Private Sector 117121.00 116660.00 NZD Million May 2021

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.
Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.00 67.32 0.25 1985 - 2022 percent Daily

News Stream
New Zealand Hikes Cash Rate by 50 Bps to 1.5%
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.
2022-04-13
RBNZ Hikes Cash Rate for 3rd Time, Flags Higher Peak
The Reserve Bank of New Zealand raised its official cash rate (OCR) by 25 basis points to 1.0% during the February meeting, as widely expected. This was the third consecutive rate hike that brings borrowing costs to pre-pandemic levels, amid soaring inflation and surging housing prices. The board mentioned that more monetary tightening was needed to cool a heated economy, adding the cash rate would reach 2.2% by the end of this year and 2.57% by March 2023, which is a more aggressive path than the 2.1% and 2.3% seen in November's projections. The committee also stated that it will commence the gradual reduction of its bond holdings under the Large Scale Asset Purchase (LSAP) programme through both bond maturities and managed sales. That said, policymakers acknowledged that the spread of the Omicron COVID-19 variant would further disrupt economic activity and weigh on consumer and investor confidence in the near term.
2022-02-23
New Zealand Hikes Cash Rate Again, More Rises Likely
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.
2021-11-24