The official cash rate is on hold and “the economy is at an early stage in its recovery”, according to the Reserve Bank’s latest statement. Yes, the recovery is looking a bit patchy and industry-dependent, but we are firmly off the bottom and into the growth phase of the economic cycle.
There are plenty of positive indicators that 2026 is going to be a major improvement on the past two years, including:
There are still some major question marks: when will the labour market pick up? Will house prices see any significant increase this year? And will inflation drop back, or will the RBNZ need to rein it in with OCR increases? Looking at the big picture, though, our economy has steadied and the outlook is much brighter than has been since 2023.
It’s a good time to put your money to work. From the banks: term deposit rates are averaging 3.55% and on-call savings rates are rock-bottom at 0.7%. The NZX50 has been close to flat for the year, so investors have sought out better returns. Will the international markets keep performing well, or is the AI bubble about to burst? We don’t know. But at Zagga we are striving to ensure returns are still between 6-8%, backed by New Zealand property.
For investors considering their next move, structure and security matter just as much as return.
In this environment, well-structured, property-backed lending continues to offer consistent income through the cycle. At Zagga, we remain focused on thorough loan assessment and active management, ensuring returns appropriately reflect risk as the recovery phase unfolds.
Zagga in New Zealand: Zagga Limited (Zagga) holds a peer to peer licence (FSP393946) from the Financial Markets Authority (FMA). Zagga is a registered member of Financial Services Complaints Limited, Registered ID 5580. Magna Trust Company Limited is a registered member of Financial Services Complaints Limited, Registered ID 5580.
