Kiwibank chief economist Jarrod Kerr said that despite a renewed weekend flare-up in the Middle East, markets largely expect a peace deal and oil has retraced to pre-conflict levels, supporting a potential demand rebound. He added New Zealand’s economy has been hit but not derailed—the oil shock has slowed the recovery and dented demand but has not knocked activity off track—so the RBNZ has ample reason to leave policy unchanged at its July meeting.

2026-06-29

Kiwibank chief economist Jarrod Kerr said that despite a renewed weekend flare-up in the Middle East, markets largely expect a peace deal and oil has retraced to pre-conflict levels, supporting a potential demand rebound. He added New Zealand’s economy has been hit but not derailed—the oil shock has slowed the recovery and dented demand but has not knocked activity off track—so the RBNZ has ample reason to leave policy unchanged at its July meeting.