The Official Cash Rate
The Official Cash Rate is 2.75%. The Reserve Bank raised it by 0.25 percentage points on 2 September 2026, to 2.75%, and held it at the 28 October decision. It is 2.75 points below the 5.5% peak of 2023 and the real cash rate (OCR minus inflation) is −0.95 points. The next decision is on 9 December 2026.
Built from Reserve Bank of New Zealand and Stats NZ data. Figures refresh automatically.
Official Cash Rate
2.75%
raised 0.25 points on 2026-09-02 · RBNZ
Days since last change
56
held at 2.75% at the 28 Oct decision · RBNZ
Next decision
9 Dec 2026
Monetary Policy Statement · RBNZ
Change from the 2023 peak
−2.75 pts
peak 5.5% from 2023-05-25 · RBNZ
Real cash rate
−0.95 pts
OCR minus annual inflation · NZ Business Alliance calculation
The OCR since 1999
Every change in the Official Cash Rate since it was introduced in March 1999. Hover for the date and the move.
The OCR sat at a record-low 0.25% from March 2020 until October 2021, rose to 5.5% by May 2023, was cut back to 2.25% by November 2025, and has since been raised to 2.75%.
Every move since 2019
Each OCR decision that changed the rate, in percentage points. Orange is an increase and blue is a cut.
Between October 2021 and May 2023 the Reserve Bank raised the OCR 12 times in a row, in steps of 0.25 to 0.75 points. It then cut it 9 times from August 2024 to November 2025. So far in 2026 there have been 2 increases.
Time spent at each level
Share of days since 1999 that the OCR sat at each rate (levels above 1% of days).
The most common level is 2.5%, which the OCR has sat at for 17.2% of days since 1999. The record low of 0.25% accounts for a smaller share, from March 2020 to October 2021.
OCR by month, 2008 to now
The rate in force at the end of each month. Darker means higher.
Read across a row to see a year, down a column to compare the same month over time. The 2020 to 2021 low and the 2023 to 2024 peak stand out as a pale band followed by a dark one.
The OCR against market rates
The OCR, the 90-day bank bill rate, the 2-year swap rate and the 10-year government bond yield since 2021.
Short-term market rates follow the OCR closely. The 2-year swap and 10-year bond show what markets expect over longer periods, and often move before the OCR does.
What markets are pricing
The 90-day bank bill yield minus the OCR, in percentage points.
At +0.41 points, the 90-day bank bill rate is above the OCR, leaning towards markets expecting higher rates. A gap of a tenth or two is normal because bill yields include a small funding premium, so only a wider gap says much. It is a rough guide, not a forecast.
The real cash rate
The OCR minus annual inflation, each quarter. Below zero, borrowing costs less than prices are rising.
When the real rate is negative the Reserve Bank is generally seen as supporting spending, and when it is positive as holding spending back. The most negative reading was −5.9 points in the March 2022 quarter, when inflation was far above the cash rate.
Inflation against the cash rate
Each dot is a quarter since 2016: annual inflation across, OCR up. Darker dots are more recent. Dots above the dashed line have a positive real rate.
The path loops anti-clockwise: inflation rose first, then the OCR chased it upwards, and inflation fell back as rates stayed high.
The swap curve now, a year ago and two years ago
Swap rates for 1 to 15 years show what the market charges for fixed rates over different periods.
A steeper line to the right means markets expect higher rates further out. Banks price longer fixed mortgage terms off these rates, not directly off the OCR.
What this means for your business
- Borrowing costs: the OCR is 2.75%. Floating-rate business loans and overdrafts tend to follow it closely. Fixed rates follow the swap curve above, so check where the 1 and 2-year rates are before fixing.
- Direction: the OCR has been raised 2 times this year after a run of cuts from August 2024 to November 2025. The 90-day bank bill rate is 0.41 points above the OCR, leaning towards markets expecting higher rates. That is a guide, not a forecast.
- Customer spending: higher rates leave households with less to spend. Watch card spending and the cost of living on the NZ Business Pulse page.
- Plan for both ways: test your cash flow at one percentage point higher and lower before the next decision on 9 December 2026.
Upcoming OCR decisions
| Date | Type |
|---|---|
| 9 December 2026 | Monetary Policy Statement |
| 10 February 2027 | Monetary Policy Review |
| 17 March 2027 | Monetary Policy Statement |
| 5 May 2027 | Monetary Policy Statement |
Reserve Bank of New Zealand, OCR decision dates (updated 18 Sep 2026). Decisions are announced at 2pm New Zealand time.
The last 12 changes
| Announced | From | To | Change (points) |
|---|---|---|---|
| 2 September 2026 | 2.5% | 2.75% | +0.25 |
| 8 July 2026 | 2.25% | 2.5% | +0.25 |
| 26 November 2025 | 2.5% | 2.25% | −0.25 |
| 8 October 2025 | 3% | 2.5% | −0.5 |
| 20 August 2025 | 3.25% | 3% | −0.25 |
| 28 May 2025 | 3.5% | 3.25% | −0.25 |
| 9 April 2025 | 3.75% | 3.5% | −0.25 |
| 19 February 2025 | 4.25% | 3.75% | −0.5 |
| 27 November 2024 | 4.75% | 4.25% | −0.5 |
| 9 October 2024 | 5.25% | 4.75% | −0.5 |
| 14 August 2024 | 5.5% | 5.25% | −0.25 |
| 24 May 2023 | 5.25% | 5.5% | +0.25 |
The Reserve Bank series is dated by the day a new rate takes effect, one day after the announcement. Dates here are announcement dates.
Questions people ask about the OCR
What is the Official Cash Rate (OCR) now?
The OCR is 2.75% as of 29 October 2026. The Reserve Bank last changed it on 2 September 2026, raising it from 2.5% to 2.75%, and held it at its 28 October 2026 decision.
When is the next OCR announcement?
The next scheduled OCR decision is on 9 December 2026 (Monetary Policy Statement). The following decisions are 10 February 2027, 17 March 2027, 5 May 2027.
How high did the OCR go in 2023?
The OCR peaked at 5.5% in May 2023. It was then cut to 2.25% by November 2025, before the Reserve Bank raised it again in 2026.
What was the lowest the OCR has been?
The OCR was cut to a record low of 0.25% in March 2020 and stayed there until October 2021.
How does the OCR affect mortgage rates?
The OCR is the Reserve Bank’s main tool. It sets the price of overnight money and influences what banks pay and charge, especially on floating and short fixed-term mortgages. Longer fixed rates follow wholesale swap rates, which move on what markets expect the OCR to do, so they often change before the OCR does.
What is the real cash rate?
The real cash rate is the OCR minus annual inflation. At −0.95 points it means the cash rate is below the rate prices are rising, which is generally seen as supporting rather than restraining spending.
Sources and method
Reserve Bank of New Zealand, wholesale interest rates (series B2) (Free to use with attribution); Reserve Bank of New Zealand, OCR decision dates (Free to use with attribution); Stats NZ, Consumers price index (CC BY 4.0). The real cash rate is the OCR in force at the end of each quarter minus annual CPI inflation to that quarter. The market spread uses weekly samples. Charts are calculated by NZ Business Alliance and are not forecasts. Data built 2026-10-30.