Record immigration to blame for rates staying higher for longer: RBNZ

Reserve Bank governor Adrian Orr told journalists that while per-capita consumption has fallen, overall consumption is rising because of the growth in the population.

Stats NZ said earlier this month that there was a net migration gain of 118,800 people in the year ended September, the highest annual total on record.

“Per capita consumption is actually declining but overall consumption is rising because there are more New Zealanders,” Orr said.

The central bank raised its forecasts for the OCR from June next year out to December 2026 compared with its previous forecasts in August and indicated its earliest cut in the OCR wouldn't be until the March or June quarters of 2025.