RBNZ Governor Adrian Orr comments made regarding two new Monetary Policy Committee (MPC) members that have been appointed.
Headline on this last week here:
Orr emphasised the committee’s unwavering focus on controlling inflation:
- “The MPC remains laser-focused on its job to control inflation and Carl and Prasanna will play an important part in our discussions”
Last week Orr made upbeat comments, saying the tide is turning on inflation around the world and there was a clear feeling among central bank leaders he had spoken to recently that interest rates have peaked and cuts are getting closer:
- "We're now in a much happier space, where most central banks feel we're back on top of inflation, [we're] not there yet."
- "But inflation expectations have been the big concern, the more people think inflation will rise next year, the more inflation will rise next year."
- Orr said the New Zealand economy was tracking to the RBNZ's expectations, and the bigger than expected contraction in growth at the end of the last year and dip back into recession was part of the necessary readjustment. "That means that we are on track to getting inflation back into the target band."
