New Zealand - Money Market Rate

For New Zealand, select interest rates and yields: central bank policy, bank bills, swap spreads, yields of benchmark government bonds in secondary-market trading.

• Measurement: Percent per annum (% p.a.)
• Adjustment: Not seasonally adjusted (NSA)
• Native frequencies:
• Daily
• Monthly
• Start dates:
• Daily: As early as 4 January 1985
• Monthly: As early as 1975m1

The amount of money quoted as a quarterly, semi-annual, or annual rate, paid by the borrower to the lender over a period of time. It is compensation to the lender for the immediate use of money to the borrower and for the inflationary erosion of its buying power over the life of a loan. Interest rates are reflective to the supply and demand in New Zealand markets.

Financial institutions trading financial instruments will normally quote both bid and offer rates for those financial instruments. The mid-rate is the rate in the middle of this range

Glossary

Bank bills

These are mostly issued as Registered Certificates of Deposit (RCD) but can also be a Bill of Exchange issued or accepted by a bank. Bills of Exchange represent only a very small portion of total securities outstanding in this category. Bank bill yields are 11.10am market mid-rates.

1-year bond

The one-year benchmark for New Zealand Government bonds with a fixed interest coupon paid semi-annually in arrears. The bonds are redeemable at par on maturity. 

2-year bond

The two-year benchmark for New Zealand Government bonds with a fixed interest coupon paid semi-annually in arrears. The bonds are redeemable at par on maturity.

5-year bond

The five-year benchmark for New Zealand Government bonds with a fixed interest coupon paid semi-annually in arrears. The bonds are redeemable at par on maturity.

10-year bond

The ten-year benchmark for New Zealand Government bonds with a fixed interest coupon paid semi-annually in arrears. The bonds are redeemable at par on maturity.

Interest rates

A charge, quoted as a quarterly, semi-annual, or annual rate, paid by the borrower to the lender over a period of time. It is compensation to the lender for the sacrifice of the immediate use of money and for the inflationary erosion of its buying power over the life of a loan. Interest rates are sensitive/responsive to the supply and demand factors of credit and to inflationary expectations.

New Zealand markets

Made up of financial institutions that will trade, both New Zealand cash, and financial instruments. They will quote both bid and offer rates.

Official Cash Rate (OCR)

The Official Cash Rate (OCR) is an interest rate set by the Reserve Bank to implement monetary policy, so as to maintain price stability. 

Overnight interbank cash rate

The Overnight Interbank Cash Rate is the average interest rate of secured/unsecured overnight cash transactions that the market (price makers) quote each other for the purposes of lending and borrowing short-term (overnight) money, without the need for Reserve Bank facilities. 

There are not normally revisions. However if revisions are necessary, they would be in bold font when reported by the source.

Further reading

At the source:

• Wholesale interest rates - B2 » Background notes