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Miscommunication from the Reserve Bank has driven interest rates higher than they should be, Kiwibank economists say, but they expect the economy to recover next year, anyway.
Kiwibank has released its outlook for 2026, noting that the Reserve Bank is currently "at the centre of some confusion".
Wholesale rates have lifted since the bank's last official cash rate announcement, even though it reduced the rate.
It was firmer than some had expected in its view that rates would not have further to fall.
The resulting increase in swap rates led to Westpac and the Co-Operative Bank increasing what they charge some fixed-term home loan borrowers.
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