NZIER said near term growth outlook for New Zealand has been revised up. Annual average growth in GDP is expected to reach 5% level in March 2022. Also, on average, annual growth is expected to reach 2.6% by March 2024. Inflation outlook is also revised up, reflecting that effects of cost increases are expected to persist over the coming years.
RBNZ has indicated that it would likely start raising interest rate in the second half of 2022. NZIER said it’s in line with forecasts for the 90-day bank bill rate. Also, expectation of higher inflation globally have driven up long-term interest rates. Outlook for long-term bond yields has also been revised up.
