Economy · Forecasts · one outlet
Westpac lifts its inflation forecasts and expects the Reserve Bank to pause in October, then raise rates in December
Westpac's October forecast update raised short-term inflation forecasts on higher energy prices and a lower exchange rate, cut its 2026 house price forecast to a 1.4% fall and expects an RBNZ pause in October and a hike to 3% in December (Westpac IQ). Interest.co.nz reported a 4.2% inflation figure by the end of 2026.
Higher inflation and rates squeeze households and the housing market.
Mortgage rates may rise before they fall.
It is one bank's view.
DailyDrop New Zealand edition No. 6 · Morning · SAT., OCT. 10, 2026