RBNZ Governor Adrian Orr, in a parliamentary committee appearance today, articulated a firm stance on maintaining restrictive monetary policy to tackle the country’s higher-than-desired inflation rate.
Currently sitting at 4.7%, New Zealand’s inflation remains “too high” and overshoots RBNZ’s target band of 1% to 3%
“That’s why we’ve retained a restrictive monetary policy stance with the official cash rate at 5.5%, and we’ll be back at the end of this month again with our updated views on the wisdom of that stance.”
Deputy Governor Christian Hawkesby provided additional insights, noting the resilience of New Zealand’s financial system and the capacity of consumers to absorb higher interest rates.
“The vast majority of households have continued to manage the debt and service their mortgages, although some are struggling and falling behind,” Hawkesby added.
