The Governor of the Reserve Bank of New Zealand (RBNZ), Adrian Orr has shed more light on the central bank’s rate hike path at the press conference following the decision in May.
Key comments
We are very focused on containing aggregate demand.
We need to anchor inflation expectations.
We trust that households can bear higher rates.
This is our best option to contain inflation.
The range of estimates for the neutral rate is between 2% and 3%, and rates above 3% are needed.
The least you can regret is doing too much too soon with fees.
Loan financing has increased to NZ$10.2 billion.
A recession is not in our central forecastsbut it is possible.
We certainly think we have a lot more work to do with rates.
Our forecast for a fall in house prices remains very slight.
Source: Fx Street
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