Economy tipped to grow 0.7%, bolstering case for RBNZ rate pause

Economy tipped to grow 0.7%, bolstering case for RBNZ rate pause
Lower interest rates, improving fortunes for the primary sector and a recovery in international tourism have been cited as helping lift GDP. (Image: Getty)
Rebecca Howard
The economy is likely to have ticked up 0.7% quarter-on-quarter in the first three months of the year, which will add to the view that the Reserve Bank of New Zealand will keep the Official Cash Rate on hold at 3.25% in July.The Reserve Bank of NZ (RBNZ) forecasted the economy would grow 0.4% in the May Monetary Policy Statement; however, its Kiwi-GDP Nowcast, a weekly estimate of GDP growth, jumped to 0.6341% on Friday, up from 0.5479% the previous week. The Kiwi-GDP Nowcast incorporates the latest available data. Bank economists als...

More Economy

RBNZ likely to hit pause as market eyes future cuts
Economy

RBNZ likely to hit pause as market eyes future cuts

The official cash rate is at 3.25% versus 5.5% a year ago.

Business confidence nixes July RBNZ cut
Economy

Business confidence nixes July RBNZ cut

Economists say July is a pause, not the end point.

Rebecca Howard 02 Jul 2025
Monthly CPI tech takes Stats NZ into the future
Economy

Monthly CPI tech takes Stats NZ into the future

Budget funding for new inflation-reporting tech is a giant leap forward, agency says.

Maria Slade 27 Jun 2025
Corporates think NZ 's on the up: Forsyth Barr
Primary Sector

Corporates think NZ 's on the up: Forsyth Barr

The Pulse of NZ Business survey found construction and retail continue to lag.

Gregor Thompson 25 Jun 2025