New Zealand Interest Rate
Jan 31, 2024
Time to Release
|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.
The Reserve Bank of New Zealand kept its official cash rate (OCR) unchanged at 5.5% during its November meeting, extending the rate pause for the fourth straight gathering and matching market consensus. The board remained confident that the current level of OCR is restricting demand. However, ongoing excess demand and cost pressures were of concern amid elevated core inflation. The committee agreed that interest rates will need to stay at a restrictive level for some time to bring inflation back to a target of 1 to 3% and support sustainable employment. While forecasting a cash rate peak at 5.7%, policymakers noted they need to wait for further data to observe the speed and extent of easing in domestic capacity pressures. The RBNZ mentioned it was aware that parts of the economy were slowing but there had been less of a drop in total demand growth than expected earlier in the year. Meantime, members viewed that monetary policy was supportive of sustainable house prices.
New Zealand Interest Rate History
Last 12 readings