Waiting for economic recovery? Hold on until next year
New Zealand households are expected to face continued economic pressure through the end of the year due to inflation and rising fuel costs. The ASB bank predicts further interest rate hikes as the economy struggles with uneven growth.
Why it matters
Economic forecasts provide critical guidance for household financial planning and reflect broader global inflationary trends impacting consumer spending.
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New Zealand households probably won't feel much better off until next year, ASB says.
It has released its latest quarterly economic forecast, which predicts two more official cash rate (OCR) hikes before Christmas to tackle inflation driven by fuel prices.
"If this year had a personality, it would be fickle," ASB chief economist Kim Mundy said.
"2026 has kept holding out the promise of something better, then pulled away just as it felt within reach. As oil prices fell through the middle of the year, we had become increasingly hopeful that weaker [second quarter] growth was a brief hiccup.
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