"We are at the low end globally and we are tracking in the right direction," said Reserve Bank of New Zealand Governor Adrian Orr to New Zealand (NZ) Parliament's Finance and Expenditure Select Committee. "The central bank was confident domestic inflation was now tracking lower," adds Reuters.
Additional comments
Labor constraint is a key reason to “consciously” slow demand to match supply capacity.
There is and will be financial stress in many households.
At times monetary policy was overly loose.
Our outlook ahead shows that as spending growth slows, labour is freed up.
The central bank expects house prices will fall around 20% by mid-2023 from their peak at the end on December 2021.
Even with these falls, prices would be above pre-COVID levels.
But there will be and there is financial stress in many households because people have taken on significant mortgages, significant commitment.
New Zealand was in a very good place to manage through this period of higher mortgage rates.
Market reaction
NZD/USD traces RBNZ Governor’s attempt to justify the latest moves while also matching the previous cautious remarks, as the quote drops back to 0.6275 by the press time.
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