Fortnightly Economic Update – 3 September 2026
The Reserve Bank raised the Official Cash Rate by another 25 basis points to 2.75%, while businesses reported stronger activity. At the same time, inflation remained a concern due to higher energy prices.
Consumer sentiment improved regarding the future but remained subdued amid weak real incomes, higher interest rates and uncertain economic conditions. Employment continued to perform positively, while building consents declined recently.
Internationally, economic growth slowed in Australia, while the outlooks for the US, China and Europe remained mixed. Higher energy and agricultural prices continued to pose global inflation risks.
A key focus of the update is El Niño. The weather phenomenon could affect New Zealand’s agriculture and energy supply in particular. The impacts remain uncertain, although favourable starting conditions could help mitigate potential effects.
Fortnightly Economic Update – 18 September 2026
New Zealand’s economy grew by 0.2% in the second quarter. Exports, particularly from the meat and dairy sectors, and construction supported growth, while household spending stagnated due to higher fuel prices.
Rising oil prices increased global inflation pressures and pushed long-term interest rates higher. Financing costs also rose in New Zealand, which could add pressure on mortgages and business investment.
Business activity showed early signs of improvement in the third quarter, while consumer sentiment remained subdued. Retail and the housing market remained weak, while net migration continued to increase.
A key focus of the update is the impact of higher oil prices on inflation. While tradable goods are affected immediately, higher energy and transport costs also feed into domestic prices with a delay.
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