New Zealand Interest Rates
Last ReleaseDec 31, 2025
Previous2.25
FrequencyDaily
Next Release—
Time to Release—
Units In%
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.
Latest Updates
The Reserve Bank of New Zealand lowered its official cash rate by 25 bps to 2.25% at its final meeting of the year, a widely expected move that brought borrowing costs to their lowest level since mid-2022. Policymakers said the decision reflected significant spare capacity in the economy and easing inflation pressures. Annual CPI rose to the top of the 1–3% target band in Q3, but core and non-tradables inflation continue to moderate, supporting expectations for inflation to return to 2% by mid-2026. Economic activity remained weak through mid-2025, with GDP contracting in Q2, though near-term indicators suggest a gradual recovery. The central bank noted balanced risks, cautioning that weak household and business confidence could restrain the recovery, while stronger housing or export-driven demand could keep inflation more persistent. The MPC said future moves depend on the economic and inflation outlook.Historical Data
| Highest | Lowest | Average | Date Range | Source |
|---|---|---|---|---|
| 67.32 | 0.25 | 6.62 % | 1985-2025 | Reserve Bank of New Zealand |
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