RBNZ Governor Orr leading the press confernce:
- too early to determine impact of Cyclone Gabrielle
- said prices for some goods are likely to spike in the weeks ahead
- still forecasting a recession 9 to 12 months period
- Demand needs to slow significantly
- more savings will relieve inflationary pressures
- increased deposit rates will promote savings
- very little discussion of a 25bp rate hike, most focus was on 50bp
Reserve Bank of New Zealand Chief Economist Conway says the economy is severely capacity constrained:
- the impact of the cyclone has boosted the demand for labour
- possibility that the build-back from cyclone damage boosts inflation
Earlier:
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