Australia & New Zealand Weekly

Latest edition · July 13, 2026

WestpacWeekly20260713

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.

The report highlights a hawkish near-term stance from the RBA, with increased conviction for an August hike, balanced against an updated outlook that brings forward expected rate cuts to August 2027. In New Zealand, the RBNZ unexpectedly initiated a new tightening cycle by raising the OCR to 2.50%, with further hikes anticipated through 2027. Global themes include lingering energy market volatility and central bank responses to supply-side inflation shocks, particularly in the US and the Middle East.

Key takeaways from the latest edition

• 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.

What this series covers

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

Edition archive

• WestpacWeekly20260713

  July 13, 2026

• WestpacWeekly20260622

  June 22, 2026

• WestpacWeekly20260525

  May 26, 2026