RBNZ Governor Adrian Orr said in a speech that New Zealand’s financial systems remains “well placed to support the economy”, but there will be “stresses in business and amongst households as interest rates and asset prices adjust”.
Regarding monetary policy objective, he emphasized, “we have our eyes firmly focused on meeting our inflation target”. He also mentioned that inflation is still too high in an absolute sense.”
“Central banks globally — the Reserve Bank of New Zealand included — are working to actively slow domestic spending by raising interest rates so as to constrain inflation,” said Orr. “This means employment prospects will be increasingly compromised.”