Retail interest rates on lending and deposits - B3

Released
05 October 2017 03:00 p.m.
Next release
06 November 2017 03:00 p.m.
Source
Reserve Bank of New Zealand
Periodicity
Monthly
Business interest rates Retail interest rates
Date Business lending rate1 SME overdraft rate2 Floating first mortgage new customer housing rate2 Six month term deposit rate2
Previous years:
Sep 2015 5.66 9.66 5.99 3.44
Sep 2016 4.85 9.25 5.59 3.27
Monthly:
Oct 2016 4.95 9.27 5.59 3.28
Nov 2016 4.81 9.25 5.61 3.30
Dec 2016 4.60 9.21 5.61 3.30
Jan 2017 4.67 9.19 5.71 3.28
Feb 2017 - 9.25 5.72 3.25
Mar 2017 - 9.35 5.79 3.25
Apr 2017 - 9.35 5.80 3.32
May 2017 - 9.32 5.81 3.34
Jun 2017 - 9.36 5.84 3.31
Jul 2017 - 9.36 5.84 3.31
Aug 2017 - 9.34 5.84 3.31
Sep 2017 - 9.35 5.84 3.25
  1. This rate is not surveyed directly, but calculated using other data. Due to the retirement of the SSR this rate has not been updated since January 2017. See series description for further details.
  2. Interest rates shown are weighted average rates.

The Data: Coverage, Periodicity, and Timeliness

Coverage characteristics

Data are interest rates as at the last business day of the month. The survey covers all registered banks.

Data series being  published (the longest running series beginning 1964) are weighted interest rates for:

  • SME overdraft rate
  • Floating first mortgage new customer housing rate
  • Effective credit card rate on interest-bearing credit card debt
  • Effective credit card rate on all credit card debt
  • Six-month term deposit rate

With the retirement of the SSR the following interest rates have not been updated since January 2017. We are looking to extend other Reserve Bank data collections to collect these interest rates in the future.

  • Business lending rate
  • Effective floating mortgage rate
  • Effective fixed mortgage rate
  • Effective mortgage rate 

All interest rates should be treated as indicative only.

For the Call deposit rate and Base lending rate see Discontinued statistics.

Periodicity

Monthly

Timeliness

Published four working days after the end of the reference period.

The following rates will generally be published with a one or two month lag as they are compiled with other statistics that are released after the retail interest rate statistics.

  • Effective credit card rate on interest-bearing credit card debt
  • Effective credit card rate on all credit card debt

Access by the public

Statistics release calendar

The "Statistics Release Calendar" provides a long-term plan of scheduled releases. It is updated and released on the first working day of the month.

Integrity

Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses

Data are collected under Section 36 of The Reserve Bank of New Zealand Act 1989.

The Reserve Bank of New Zealand publishes only aggregated data. Individual institutional data remains confidential.

Provision of information about revisions and advance notice of major changes in methodology

Provisional data are italicised. Data are deemed provisional when a series is under review. New data, or revised data, are in bold font. This applies to the summary table only and not excel files.  Revisions are generally published when the table is next due to be updated and released. Should revisions need to be made more promptly, a note is posted on the website. Any major changes in methodology are posted on the website as a note.

Quality

Dissemination of documentation on methodology and sources used in preparing statistics

A list of registered banks is available.

Dissemination of statistics that support statistical cross-check and provide assurance of reasonableness

Most financial institutions either publicly display rates or make rates available upon request. National press and Interest.co.nz also publishes a range of interest rates.

Business lending

SME overdraft rate

The small- to medium-sized enterprise (SME) overdraft rate is the base interest rate for new overdraft loans for SME non-farm enterprises. It is weighted by each surveyed institution’s share of the total value of overdraft lending subject to the business base rates offered.
The rate measures the set base rate component of the product offered to customers and does not include any margin component added to this rate, which is related mostly to individual borrowers’ credit risk.
The SME overdraft rate was previously published under the name of business base lending rate (BBLR). The new name more accurately reflects the underlying loan products being surveyed. There is no change to the source data stemming from this name change.

Housing lending

Floating first mortgage new customer housing rate

The interest rate recorded here is the weighted average of the advertised (or ‘carded’), standard, floating (not fixed for a specific term) first mortgage interest rate offered by banks to new borrowers for residential property. Any special rates or discounts offered to borrowers with conditions (e.g. 30 percent equity) are excluded from the results. The rate up to February 2017 was weighted by each surveyed institution's share of floating mortgage loans from S8 Banks: Mortgage Lending of the Aggregate Registered Bank statistical return. From March 2017 the rate is weighted by each surveyed institutions share of floating mortgage loans from Bank Assets – Loans fully secured by residential mortgage – S33 of the Aggregate Registered Bank balance sheet return.

Credit card lending

Effective credit card rate on interest-bearing credit card debt

The effective credit card rate on interest-bearing credit card debt is a weighted average of the interest rates currently being paid on credit card debt that is incurring interest.
This rate is sourced from the Credit Card statistics and is published with a two month lag.

Effective credit card rate on all credit card debt

The effective credit card rate on all credit card debt is a weighted average of the interest rates currently being paid on all credit card debt. This rate includes both credit card debt that is incurring interest and credit card debt that does not incur interest (because it is paid off in full each month or is subject to an interest-free period).
This rate is sourced from the Credit Card statistics and is published with a two month lag.

Term deposits

Six-month term deposit rate

This rate is the advertised interest rate paid for a new six month term deposit of $10,000. The rate up to February 2017 was weighted by each surveyed institution’s share of household deposits from S6 Household Credit of the Aggregate Registered Bank statistical return. From March 2017 the rate is weighted by each surveyed institutions share of interest bearing household deposits included in Banks: Liabilities – Deposits by sector – S40 of the Aggregate Registered Bank balance sheet return.

 

Rates currently not being updated

Business lending rate

The business lending rate is a weighted average interest rate (WAIR) for NZ resident business borrowing (including agriculture) from registered banks.
The business lending rate was not surveyed directly, but was calculated as a residual from the existing monthly WAIR for all registered bank NZD claims, which has been surveyed and published since June 1998 until January 2017.
To calculate the business lending rate, non-business lending categories were identified:

  1. Housing and credit card lending totals comprise more than half of all NZD claims. WAIR are surveyed monthly for these series.
  2. WAIRs are estimated for five other loan categories that are not included in the Bank's aggregate business and agriculture loan totals (table C5). These include lending to:
    1. Finance (both interbank and other finance);
    2. Insurance;
    3. Government and defence (in effect; local authority claims);
    4. Other consumer loans, and;
    5. Non-resident lending
    Estimation of WAIRs for the five listed categories draws on market prices for 90 day bills, two and three-year swap rates, published consumer loan interest rates, and the Bank’s knowledge of market pricing practices. Given the nature of lending to these categories and their aggregate share of total NZD claims (around 10%) it is the Bank’s view that the calculated business lending rate is not materially affected by the estimation process.
    Subtracting (1) surveyed housing and credit card loan WAIRs and (2) estimated WAIRs for the loan categories from the total NZD claims WAIR delivers a calculated business lending rate as a residual WAIR.

     

Effective floating mortgage rate

The effective floating mortgage rate is a weighted average of the interest rates currently being paid across all floating rate mortgage loans.
It is calculated as a function of the average floating mortgage loan balances and the interest receivable on those balances over the month.
This rate differs from the floating first mortgage new customer housing rate as it accounts for discounts that may be applied to the advertised floating mortgage rate. These may include special offers and offset mortgage facilities.
The effective floating mortgage rate was sourced from S8: Banks: Mortgage Lending of the Aggregate Registered Bank statistical return.

Effective fixed mortgage rate

The effective fixed mortgage rate is a weighted average of the interest rates currently being paid across all fixed term mortgage loans.
It is calculated as a function of the average fixed term mortgage loan balances and the interest receivable on those balances over the month (see above formula).
The effective fixed mortgage rate was sourced from S8: Banks: Mortgage Lending  of the Aggregate Registered Bank statistical return.

Effective mortgage rate

The effective mortgage rate is a weighted average of the interest rates currently being paid across all types of mortgage lending (floating and fixed).
It is calculated as a function of the average mortgage loan balances and the interest receivable on those balances over the month (see above formula).
The effective mortgage rate was sourced from S8: Banks: Mortgage Lending of the Aggregate Registered Bank statistical return.

Symbols and conventions for summary table

0 Value rounded to zero
- Zero or not applicable
.. Not available
bold Revised/new
italics Provisional
light red background Historical

General notes

  • Individual figures may not sum to the totals due to rounding
  • Percentage changes are calculated on unrounded numbers
  • You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.