Policy TrackerNZABOUT
OVERVIEW

This platform benchmarks the RBNZ's Official Cash Rate (OCR) against the Taylor Rule — a rule-based framework that prescribes an interest rate from inflation and the output gap. The goal is not to argue the RBNZ should follow any rule mechanically, but to provide a structured lens for analysing how actual policy has differed from rule-based recommendations across governors, economic episodes, and parameter assumptions.

The Dashboard shows the OCR versus the Taylor Rule over time, with a decomposition of what drives the prescribed rate and a deviation chart showing how far the RBNZ ran above or below the rule at each point. Parameters are adjustable in real time — change the inflation response, output gap weight, or neutral rate assumption and all charts update immediately.

The Analytics page provides a statistical breakdown of deviations: distributions, rolling trends, scatter correlations, and a regime comparison table estimating each governor's implicit policy reaction function.

All data is sourced from official RBNZ publications. A core limitation applies throughout: the RBNZ set each OCR using information available at that time, whereas Taylor estimates here use the latest revised data vintage. Historical deviations are a retrospective benchmark, not a real-time verdict on individual decisions. See the Methodology page for full details.

DATA SOURCES
CURRENT MPS VINTAGE
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The platform updates daily. The MPS dataset is replaced after each quarterly release (February, May, August, November). The B1 exchange rate file refreshes monthly. Core inflation measures and the neutral rate series are updated manually shortly after each MPS release.

Because newer MPS vintages revise historical output gap and GDP estimates, previously published quarters may also update when a new vintage is incorporated. The vintage indicator above shows which MPS release the current database reflects.

SOURCESERIESCOVERAGENOTES
RBNZ Monetary Policy StatementsOCR, output gap, CPI headline, GDP, unemploymentQ1 2000 – presentQuarterly projections sheet. Forward projections excluded. Output gap for the current quarter is included as the RBNZ uses it in their deliberations, but is labelled provisional.
RBNZ B1 Exchange RatesNZD/USD exchange rateJan 1999 – prior monthMonthly B1 series (EXR.MS11.D06) averaged to quarterly frequency.
RBNZ MPS — Neutral RateNominal neutral OCR (r*)Q1 2000 – presentManually compiled quarterly series from MPS neutral rate guidance. Pre-2010 values backfilled from the RBNZ's Finding Neutral bulletin and earlier MPS commentary.
Policy Targets Agreements & RemitsInflation target π*1990 – presentThree-step series: 1.0% (1990–1996), 1.5% (1996–2002), 2.0% (2002–present).
UPCOMING FEATURES

The platform is under active development. Planned additions:

PLANNED
MPS vintage selection
Choose which MPS vintage to use for analysis. Compare how the Taylor Rule estimate shifts between the February 2026 and May 2026 vintage, for example — useful for understanding how data revisions affect the implied policy prescription.
PLANNED
Real-time data mode
Switch the platform into a mode that uses the data available at the time of each quarterly MPS release — the output gap, neutral rate, and inflation estimates the RBNZ actually had access to when setting the OCR. Coverage will vary by series and quarter depending on publication history. Where available, this removes the revised-data limitation and enables genuine real-time deviation analysis.
PLANNED
Output gap uncertainty band
Display a Taylor Rule uncertainty band driven by an output gap range rather than a single point, reflecting the genuine uncertainty in potential output estimation.
PLANNED
Additional rule specifications
First-difference rule and balanced-approach rule variants, consistent with specifications published by the Federal Reserve and other central banks.
REFERENCES
Taylor (1993) — Discretion Versus Policy Rules in PracticeOPEN →Federal Reserve — Policy Rules and How Policymakers Use ThemOPEN →
CONTACT

Independent personal project. Not affiliated with the Reserve Bank of New Zealand.

GitHubshayan-taba / nz-taylor-rule-dashboardGmails.taba.main@gmail.com