New Zealand Interest Rate

Last Release

Jul 09, 2025

Actual

3.25

Units In

3.25

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	6.66 %	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 held its Official Cash Rate (OCR) unchanged at 3.25% during its July 2025 policy meeting, in line with market expectations and maintaining the lowest level since August 2022. The Monetary Policy Committee cited heightened uncertainty and near-term inflation risks as reasons to wait until August for further action. The annual inflation rate reached 2.5% in Q1 2025, remaining within the MPC’s 1–3% target range. While it is expected to near the upper end of the band in Q2 and Q3, easing core inflation and spare capacity in the economy should help return it toward the 2% midpoint over time. Meanwhile, New Zealand's economy contracted by 0.7% year-on-year in Q1 2025—slightly better than the expected 0.8% decline and an improvement from the 1.3% contraction in Q4 2024. Despite this modest recovery, the MPC expressed concern about the pace of the rebound, noting that ongoing uncertainty could prompt more cautious behavior from households and businesses.