New Zealand Interest Rate

Last Release

Feb 19, 2025

Actual

3.75

Units In

4.25

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	6.69 %	1985-2025	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 bps to 3.75% during its February 2025 policy meeting, in line with expectations, following a similar move in its previous announcement. This brings borrowing costs to their lowest level since late 2022 amid subdued employment, slowing economic growth, and decelerating inflation. In its monetary policy statement, the central bank noted that inflation remains near the midpoint of its 1%-3% target band. New Zealand's annual inflation rate stood at 2.2% in the December quarter of 2024, its lowest level since March 2021. Meanwhile, the country's growth has declined year-over-year for five consecutive quarters through September 2024, while wage growth is slowing, reflecting weaker demand for workers.