Optimistic Forecasts or False Hope? What HSBC’s Predictions Mean for Kiwis

HSBC economists forecast a significant reduction in the Official Cash Rate to 3% by the 3rd quarter of this year. They also anticipate a strong economic rebound with 1.8% growth this year and 2.5% in 2026.

Early indicators, such as improved business and consumer confidence, increased card spending, and a stabilising housing market, support this optimistic outlook.

As interest rates decline, household spending is expected to rise, contributing to New Zealand’s economic recovery.

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