Australia & New Zealand Weekly

This report outlines Westpac's updated economic forecasts for Australia and New Zealand, highlighting the RBA's hawkish stance and the RBNZ's unexpected rate hike. It also notes a shift in the timing of anticipated interest rate cuts due to a revised inflation outlook.

Key Takeaways

• 1.The RBA remains hawkish near term with increased conviction for an August rate hike, while rate cuts are now forecasted to start sooner, in August 2027.
• 2.The RBNZ unexpectedly raised the OCR by 25bps to 2.50%, with further hikes projected to reach a peak of 4% by September 2027.

Table of Contents

• Economic Insight
• The Week That Was
• Focus on New Zealand
• Forecast changes
• What to watch
• Economic & financial forecasts
• Corporate Directory

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