New Zealand Interest Rate

Last Release

Oct 09, 2024

Actual

4.75

Units In

5.25

Frequency

Daily

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
67.32 Mar 1985	0.25 Mar 2020	6.71 %	1985-2024	Reserve Bank of New Zealand

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 (OCR) by 50 basis points to 4.75% during its October 2024 policy meeting, marking the second consecutive rate cut and aligning with market expectations. New Zealand's annual inflation rate eased to 3.3% in Q2 2024, from 4% in the previous quarter and below market expectations of 3.5%. This also marked the lowest inflation reading since Q2 of 2021, bringing it back within the central bank's target range of 1-3%. New Zealand's economy now faced excess capacity, prompting adjustments in price and wage-setting toward a low-inflation environment. Consequently, the Reserve Bank opted to ease monetary policy to maintain stable inflation, while minimizing disruptions to output, employment, interest rates, and the exchange rate.