RBNZ May Face More Inflation Than Expected in Test for Breman

New Zealand inflation is unlikely to slow as much as the central bank predicts as the Iran war lifts fuel costs, increasing bets on an earlier interest-rate hike.

Inflation may only slow to 2.8% by the fourth quarter from 3.1% at the end of 2025, ASB Bank and Bank of New Zealand said in revised projections released this week. Westpac expects a decline to 2.6%.