New Zealand Real Interest Rate
Real interest rate FR.INR.RINR
New Zealand's real interest rate was 1.11% in 2017, ranked 31st globally. This represents a 56.5% decrease from 2016. Data from World Bank, covering 1998–2017.
Overview
New Zealand's real interest rate stood at 1.11% in 2017, a decline of +1.43pp from 2016. New Zealand ranked 31st globally.
New Zealand’s real interest rate has fallen sharply over the past two decades, sliding from an all‑time peak of 7.86 % in 1998 to a trough of 1.11 % in 2017, the lowest level recorded in the World Bank series and ranking 31st globally in that year. The decline reflects a prolonged era of accommodative monetary policy, low inflation and subdued growth that has characterized much of the post‑global‑financial‑crisis period. By 2017 the rate was virtually identical to that of Trinidad and Tobago (1.11 %) and only marginally above Japan’s 1.07 % and Belarus’s 0.95 %, placing New Zealand among the world’s most permissive real‑rate environments. The sustained low‑rate stance has supported credit expansion and asset‑price growth, but also heightened sensitivity to external shocks and inflationary pressures. If inflation expectations rise or fiscal consolidation intensifies, the real rate could begin to ascend, altering the current downward trajectory.
Data & projection
| Year | Real Interest Rate | YoY change | Rank |
|---|---|---|---|
| 2017 | 1.11% | −1.43pp | #31 |
| 2016 | 2.54% | −1.70pp | #23 |
| 2015 | 4.24% | −1.10pp | #49 |
| 2014 | 5.33% | +4.04pp | #51 |
| 2013 | 1.30% | −4.72pp | #15 |
| 2012 | 6.01% | +2.47pp | #78 |
| 2011 | 3.55% | +0.55pp | #66 |
| 2010 | 3.00% | −0.92pp | #51 |
| 2009 | 3.92% | −2.11pp | #37 |
| 2008 | 6.03% | +2.90pp | #95 |
| 2007 | 3.14% | −2.20pp | #57 |
| 2006 | 5.34% | −0.31pp | #78 |
| 2005 | 5.65% | +1.42pp | #69 |
| 2004 | 4.23% | −0.60pp | #51 |
| 2003 | 4.83% | −2.03pp | #44 |
Analysis
New Zealand's real interest rate was 1.11% in 2017, a decline of −1.43pp from 2016.
Frequently Asked Questions
New Zealand's real interest rate was 1.11% in 2017. Ranked 31st globally. This represents a 56.5% decrease from the previous year.
New Zealand's real interest rate peaked at 7.86% in 1998.
The lowest real interest rate in New Zealand was 1.11% in 2017.
New Zealand ranks 31st globally in real interest rate as of 2017.
The World Bank indicator code is FR.INR.RINR. Data sourced from World Bank.
The real interest rate of New Zealand in 2017 was 1.11%. This ranks 31st in the world.
Cite this page
@misc{historysaid_new-zealand_real-interest-rate,
title = {New Zealand Real Interest Rate},
url = {https://historysaid.com/new-zealand/real-interest-rate/},
publisher = {HistorySaid},
year = {2026}
}