The Governor of the Reserve Bank of New Zealand (RBNZ), Adrian Orrspoke this Wednesday at the press conference following the November monetary policy meeting, in which he supported the 75 basis point (bp) rise in the Official Cash Rate (OCR) previously announced by the central bank.
Featured Statements
It will be a short recession.
Wage and inflation expectations should fall.
Economic activity is currently strong.
Spending is currently strong.
The Committee spent more time considering the 75 and 100 basis point hike than the 50 basis point hike.
RBNZ chief economist Paul Conway has said that “inflation expectations are higher than expected“.
Another RBNZ official has said that the neutral interest rate has increased and that monetary conditions are not so contractive.
“We are talking about a recession of two or three quartersRBNZ Policy Officer Karen Silk said.
Additional comments
We are ripe in a hardening cycle, closer to the end than the beginning.
But new disturbances keep coming.
We are very eager to get to the point in the rate where we can be sure that inflation will come down.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
