Māori Economist warns of ongoing economic uncertainty

Atereano Mateariki Matt Roskruge | Māori Economist warns of ongoing economic uncertainty

Download Audio

A Māori economist suggests the drop in interest rates may benefit some mortgage holders, but the economy remains challenging.

The Reserve Bank has reduced the Official Cash Rate to 4.25%, prompting banks to lower mortgage and deposit rates.

Massey University economist Matt Roskruge says shifts in government spending and anticipated redundancies in organizations such as Health New Zealand are fueling uncertainty about the 2025 economic outlook.

Globally, uncertainty looms over how incoming U.S. President Donald Trump will implement his tariff policies, adding to domestic challenges.

“If you look at the forecasts that have come through for next year, unemployment is going to be worse than expected, the economic recovery is going to be slower than expected,” says Roskruge.

Matt Roskruge says the Reserve Bank’s decision aims to control inflation, but most people won’t feel the positive effects of these changes until the 2026 election year.

RELATED NEWS

Deep causes for obesity epidemic Lower Māori vax rates showing up in hospitalisations Gruelling Due Drop Challenge reaches Whakatane