Kelly Eckhold, chief economist at Westpac, said he was expecting the economy to be much stronger in 2026, with growth in GDP of about 3% over the year compared to a flat 2025. Additionally, if inflation proves sticky, the Reserve Bank may pause or reverse rate cuts, curbing the anticipated lift to consumption and investment." But for the median and for the people in the top end I think things will look a lot better." "But by the second half of the year, all the weight of the rate cuts, the cumulative benefits of all the rate cuts would have come through. "For the last couple of years, they've been reducing spending, reducing spending, reducing spending.

Source: Otago Daily Times January 04, 2026 20:38 UTC