About Taxa de Depósito Overnight (NZD)
The deposit rate for New Zealand is the rate the Reserve Bank of New Zealand pays on commercial bank reserves held at the central bank. It acts as the effective floor for overnight interbank rates in many monetary frameworks.
Why FX traders watch it
In ECB and SNB frameworks, the deposit rate is the primary policy tool. Changes here directly affect the attractiveness of holding deposits in nzd, and therefore the currency's carry appeal versus peers.
How to interpret the data
A higher deposit rate increases the return on nzd-denominated assets and tends to support the nzd. Negative deposit rates (as seen in Europe and Japan) are a headwind for the domestic currency as they penalise cash holdings.