NZ Official Cash Rate
Monitor the NZ Official Cash Rate to gauge its impact on forex valuations and predict future economic shifts.
Overview
Short-term interest rates play a crucial role in determining currency values, with traders primarily using other indicators to anticipate future rate changes. The rate decision is typically factored into the market, making the RBNZ Rate Statement, which emphasizes future outlook, more significant.
Key Information
What it Measures
The interest rate at which banks lend their reserves held at the RBNZ to other banks on an overnight basis.
Usual Effect
When the 'Actual' rate exceeds the 'Forecast', it positively impacts the currency.
Source & Frequency
Reserve Bank of New Zealand (latest release) - https://www.rbnz.govt.nz/ • This is scheduled seven times a year.
How Data is Derived
The RBNZ Governor decides where to set the rate after consulting senior bank staff and external advisers
Also Known As
Interest Rates, OCR
Acronym
Reserve Bank of New Zealand (RBNZ), Official Cash Rate (OCR)