Survey shows New Zealand business leaders predict stable inflation and falling interest rates by 2025

A recent survey by the Reserve Bank of New Zealand shows business leaders expect inflation to remain under control, with a two-year inflation forecast of 2.12 percent. This is slightly higher than last quarter but still within the target range. The official cash rate is predicted to drop to 4.25 percent by December and further to 3.33 percent in a year. Unemployment expectations have increased slightly to 5.22 percent, while wage growth is expected to be 2.81 percent annually. Economic growth is anticipated to rise to 2.17 percent in two years. House price inflation expectations have increased to over 3 percent for the coming year, although two-year expectations have decreased to 4.17 percent.