RBNZ Forecast Hikes Interest Rates to 3.5%

ANZ is forecasting that the Reserve Bank of New Zealand (RBNZ) will raise interest rates to 3.5% by next year, with three more hikes expected in October, February, and March.

This prediction comes as house prices continue to fall, with ANZ estimating a 1% decline from their current level by the end of this year.

According to the bank's September Property Focus report, higher borrowing costs are cooling an already slowing housing market.

The Wellington region is currently seeing the steepest price declines, with Auckland and other parts of the North Island also showing signs of softness.