NZ Official Cash Rate
It's an important driver of commodity demand - lower interest rates decrease carrying costs. Reduced costs to store goods will spur companies to make investments in raw materials, leading to higher inventory levels;
The rate decision is usually priced into the market, so it tends to be overshadowed by the RBNZ Rate Statement, which is focused on the future;
- NZ Official Cash Rate Graph
- History
Expected Impact / Date | Actual | Forecast | Previous |
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Oct 8, 2024 | 4.75% | 4.75% | 5.25% |
Aug 13, 2024 | 5.25% | 5.50% | 5.50% |
Jul 9, 2024 | 5.50% | 5.50% | 5.50% |
May 21, 2024 | 5.50% | 5.50% | 5.50% |
Apr 9, 2024 | 5.50% | 5.50% | 5.50% |
Feb 27, 2024 | 5.50% | 5.50% | 5.50% |
Nov 28, 2023 | 5.50% | 5.50% | 5.50% |
Oct 3, 2023 | 5.50% | 5.50% | 5.50% |
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- NZ Official Cash Rate News
Today’s CPI showed some welcome reduction in headline inflation. • Services sector inflation is easing only gradually. • Recent activity data has suggested recessionary conditions for a few months now. • The RBNZ indicated an openness to tempering the restrictiveness of conditions in July – today’s data gives them room to act on that strategy. • We now see inflation is likely below 3% in Q3 and the path towards 2% seems more assured. • Around a 30% chance of an earlier easing at the RBNZ’s in October Review now exists. • The tone of ...
Policymakers at the Reserve Bank of New Zealand have slashed half a percentage point from the official cash rate and claimed victory in achieving its inflation mandate. The seven person Monetary Policy Committee chose to cut the benchmark interest rate from 5.25% to 4.75% after meeting on Wednesday. In a statement, they said annual inflation was now within the target range and was "converging on the 2% midpoint". "The New Zealand economy is now in a position of excess capacity, encouraging price- and wage-setting to adjust to a ...
The Monetary Policy Committee today agreed to cut the Official Cash Rate (OCR) to 4.75 percent. The Committee assesses that annual consumer price inflation is within its 1 to 3 percent inflation target range and converging on the 2 percent midpoint. Economic activity in New Zealand is subdued, in part due to restrictive monetary policy. Business investment and consumer spending have been weak, and employment conditions continue to soften. Low productivity growth is also constraining activity. Some exporters have benefited from ...
A snippet from UBS on Pacific Rim central banks: Fed’s easing cycle is just getting started, UBS see another 50 bp of cuts this year and 100 in 2025. Bank of Japan to raise short term rates by 25 basis points by the middle of 2025. See the most aggressive easing moves from the Reserve Bank of New Zealand, 200 basis points of cuts by September 2025. Reserve Bank of Australia is likely to wait until Q1/Q2 before starting its easing cycle, expect 75 basis points of easing by September 2025. AUD is UBS' 'most preferred', it'll benefit ...
There are clear signs of a continued weakening in economic activity as households and businesses hunker down in response to the interest rate increases to date. Households have reduced their discretionary spending in the face of higher mortgage repayments and more uncertain employment prospects. Weaker demand, in turn, has made businesses more cautious about spending and investment. The impact of higher interest rates and public sector cutbacks has become more evident in recent months. Weaker demand has increasingly become a key ...
Today’s CPI showed some welcome reduction in headline inflation. • Services sector inflation is easing only gradually. • Recent activity data has suggested recessionary conditions for a few months now. • The RBNZ indicated an openness to tempering the restrictiveness of conditions in July – today’s data gives them room to act on that strategy. • We now see inflation is likely below 3% in Q3 and the path towards 2% seems more assured. • Around a 30% chance of an earlier easing at the RBNZ’s in October Review now exists. • The tone of ...
New Zealand’s annual consumer price inflation is returning to within the Monetary Policy Committee’s 1 to 3 percent target band. Surveyed inflation expectations, firms’ pricing behaviour, headline inflation, and a variety of core inflation measures are moving consistent with low and stable inflation. Economic growth remains below trend and inflation is declining across advanced economies. Some central banks have begun reducing policy interest rates. Imported inflation into New Zealand has declined to be more consistent with ...
Expectations are building that the Reserve Bank will cut the official cash rate on Wednesday for the first time in more than four years. Wholesale interest rates have been falling in recent weeks as financial markets expect the first cut to the official cash rate since March 2020. The Reserve Bank started increasing the cash rate in late 2021 in response to high inflation, with the OCR reaching its current peak of 5.5 percent in May last year. However, in recent months, economic data shows inflation slowing, unemployment rising and ...
There is no need to debate whether it was tightening by the Bank of Japan or the fourth consecutive rise in the US unemployment rate that spurred the dramatic market reaction at the start of last week. It seems reasonable that both played a role. And the dramatic unwinding of short yen positions, which appeared to help fuel a recovery of the Swiss franc, Chinese yuan began before the Bank of Japan meeting and the US employment report. Moreover, on the eve of the July 31 BOJ and FOMC meetings, the derivatives market had two Fed rate ...
Today’s CPI showed some welcome reduction in headline inflation. • Services sector inflation is easing only gradually. • Recent activity data has suggested recessionary conditions for a few months now. • The RBNZ indicated an openness to tempering the restrictiveness of conditions in July – today’s data gives them room to act on that strategy. • We now see inflation is likely below 3% in Q3 and the path towards 2% seems more assured. • Around a 30% chance of an earlier easing at the RBNZ’s in October Review now exists. • The tone of ...
Upcoming release on Nov 26, 2024 |
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Released on Oct 8, 2024 |
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Released on Aug 13, 2024 |
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