New Zealand Interest Rate

Last Release

Jul 10, 2024

Actual

5.5

Units In

5.5

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	6.72 %	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 kept its official cash rate (OCR) steady at 5.5% during its July 2024 policy meeting, extending the rate pause for the eighth consecutive time and confirming market expectations. Policymakers observed that the restrictive monetary policy has eased capacity pressures and reduced consumer price inflation. Although headline inflation fell to a nearly three-year low of 4% in Q1 2024, it still exceeded the 1-3% target range. However, the Committee still anticipates that headline inflation will return to the target range in the second half of the year. Consequently, the Committee agreed that monetary policy must remain restrictive. However, the degree of restraint will be gradually adjusted in line with the expected decline in inflation pressures. Meanwhile, the labor market pressures have also eased due to cautious hiring and an increased labor supply.