We expect less inflation. That’s good news.

Inflation expectations have deflated like a balloon. But that doesn't burst our bubble. In fact, we are stoked to see the numbers going in the right direction. The Reserve Bank will be too. It won't affect their current path to 3% interest rates, but a hold in 2027 is looking more likely.We'd love if the Reserve Bank took a holiday next year, just like the international travellers turning out in droves again. This last year to June had the highest number of tourists arriving since 2019.Positive manufacturing index numbers for July make it a trifecta of good news. New Zealand's manufacturing index is above the long-run average. As long as we have a weak Kiwi dollar, that strength is likely to continue.Hosted by Jarrod Kerr, Alexandra Turcu and Elliott Lowe. Follow our economic commentary & insights here https://www.kiwibank.co.nz/business-banking/thrive-hq/kiwi-economics/.Any views or information shared in this podcast, while given in good faith, aren't necessarily the view of Kiwibank.