New Zealand Monetary Policy

New Zealand

New Zealand: Reserve Bank of New Zealand maintains official cash rate at record-low

January 31, 2013

At its 31 January monetary policy meeting, the Reserve Bank of New Zealand (RBNZ) left the official cash rate (OCR) unchanged at a record-low of 2.50%, in a decision widely expected by the market. The Central Bank has kept the main monetary policy rate unaltered since March 2011.

In its statement, the Central Bank underlined that economic growth is improving amid rising business confidence and the rebuilding of the Canterbury region, which is gathering momentum. Meanwhile, the Bank stated that inflation pressures remain subdued, mainly reflecting the impact of a strong New Zealand dollar. On the downside, the RBNZ noted that the labour market remains weak and that fiscal consolidation is tempering growth.

Finally, the Bank stated that economic growth will "strengthen over the coming year, reducing spare capacity and bringing inflation back towards the 2% target midpoint". The next monetary policy meeting is scheduled for 14 march.

Author:, Senior Economist

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New Zealand Monetary Policy Chart

New Zealand Monetary Policy January 2013

Note: Official Cash Rate (OCR) in %.
Source: Reserve Bank of New Zealand.

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