RBNZ Governor Orr main the press confernce:

  • too early to find out influence of Cyclone Gabrielle
  • mentioned costs for some items are prone to spike within the weeks forward
  • nonetheless forecasting a recession 9 to 12 months interval
  • Demand must gradual considerably
  • extra financial savings will relieve inflationary pressures
  • elevated deposit charges will promote financial savings
  • little or no dialogue of a 25bp price hike, most focus was on 50bp

Reserve Bank of New Zealand Chief Economist Conway says the financial system is severely capability constrained: