The Reserve Bank of New Zealand raised its official cash rate (OCR) by 50 bps to a level not seen in 7 years of 3.0% during its August meeting, the fourth half-point rate hike, in line with market consensus. While expecting some easing of the inflation rate in the near term due to falling fuel prices and stabilization in shipping costs, the RBNZ highlighted that the inflation level would only return to the board's target range by the middle of 2024 and that more monetary tightening is needed with a peak at 4.1% in March 2023. The committee added that demand in the economy has been resilient over H1 2022, but the output was being constrained by the disrupted global supply, labor shortages, and high levels of sickness from COVID-19 and other illnesses. The RBNZ has lifted a total of 275 basis points since October 2021, when it was at a record low of 0.25%. Regarding home prices, they have continued to fall towards more sustainable levels and would decline further over the coming months.
Reserve Bank of New Zealand
Interest Rate in New Zealand averaged 6.80 percent from 1985 until 2022, reaching an all time high of 67.32 percent in March of 1985 and a record low of 0.25 percent in March of 2020. This page provides - New Zealand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. New Zealand Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2022.
Interest Rate in New Zealand is expected to be 3.00 percent by the end of this quarter, according to 王者荣耀电竞(江西)积分排榜 global macro models and analysts expectations. In the long-term, the New Zealand Interest Rate is projected to trend around 4.00 percent in 2023 and 3.00 percent in 2024, according to our econometric models.