“As households gain a little more breathing room, the improving domestic backdrop is likely to support consumer spending, business confidence and hiring. The 200 basis points (bps) of cuts in 2025 – taking the OCR to 2.25% – was helping to support economic activity, he said. But there was little need for the Reserve Bank (RBNZ) to hurry in its tightening, Smith said. “With our high share of renewable electricity, New Zealand is very well positioned to support AI-linked growth. But energy security remains a major challenge, and we need the right infrastructure to make the most of this opportunity,” Smith said.

Source: New Zealand Herald January 18, 2026 23:06 UTC