RBNZ Governor Adrian Orr told a parliamentary committee, “We can all put our hands on our hearts across the committee and say we are officially contractionary with our monetary policy at this point.”
“We need to get actual and expected inflation down,” Orr said. “The committee agreed that we need to reach a higher level Official Cash Rate sooner than previously anticipated.”
“It is the misery of inflation that is the problem here and that is the problem we are working to resolve,” Orr said.
“Our biggest surprises since August has been the persistence of global inflation… and domestically we are seeing price pressure everywhere,” said Orr.
