RBNZ's Hawkesby says the Bank needs to do even more to lower inflation

Reserve Bank of New Zealand Deputy Governor Christian Hawkesby:

• the shortage of workers is the most pressing constraint on the economy
• we need to do more to lower inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• so far the higher rates have had little impact
• the natural rate has risen
• the Bank needs to keep up with inflation

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The RBNZ was way pout ahead of most other DM central banks with early rate hikes. Hawkesby says even more needs doing.

I posted yesterday that

• the RBNZ is hiking rates into a recession.

That message was repeated by Governor Orr earlier:

• inflation, expected inflation too high, needs to be reduced

The Reserve Bank of New Zealand next meets on February 22. Its looking like another rate hike is being baked in.