Real interest rate | New Zealand – yearly data, chart and table

The Real interest year-end rate of New Zealand in 2024 was 4.25%. The end-2023 rate was  5.50%. This is the first year of decline after a period of growth. The lowest real interest rate in New Zealand was recorded in 2020, with a value of  0.25%. The highest rate was in 1986, when it achieved 22.74%. Real Interest Rate ≈ Nominal Interest Rate - Inflation Rate. If the nominal interest rate on a loan is 9%, and inflation is 6%, the real interest rate is 3%. This means the lender effectively gains 3% in purchasing power, while the borrower pays 3% in real terms.