Signs of a brighter economy in the year to come

ASB's forecasting annual growth of more than two-and a half percent in 2026.

It points to an accelerated housing market, more resilient exports, and a renewed willingness to spend.

Chief Economist Nick Tuffley says we can expect inflation to soften further, with the Reserve Bank seeing more stimulus in the pipeline.

He says it's in wait and see mode - but seems fairly confident it won't have to cut interest rates any further.