New Zealand Faces Higher Near-Term Inflation if Global Oil Prices Remain Elevated, Says RBNZ Governor

RBNZ Governor Anna Breman has warned that New Zealand could face higher near-term inflation if global oil prices remain elevated. Speaking in Dunedin, Breman noted the economy grew 0.2 percent in the June quarter despite global headwinds, but said the recovery remained uneven across the country. The central bank will review incoming data before its October monetary policy decision.

Reserve Bank of New Zealand Governor Anna Breman, speaking in Dunedin on Tuesday, indicated that persistently elevated global oil prices could push near-term inflation somewhat above the levels projected in the central bank's September statement, adding that recent movements in both oil prices and long-term interest rates reflect a difficult operating environment for monetary policy. The trip came after the Reserve Bank of New Zealand's September monetary policy statement, which noted that a national economic rebound was under way yet unevenly distributed; Breman added that newly released figures pointed to 0.2 percent GDP growth across the April-to-June quarter, notwithstanding elevated oil prices and broader global pressures, while additional indicators suggested the upturn was persisting into the current period but had yet to reach all parts of the country equally. Parts of the South Island were outperforming much of the rest of the country economically, buoyed by steady export activity, lower jobless rates, and a more active housing market, she noted, while the governor anticipated that the recovery would gain momentum and reach more sectors, driven by a stable export base and a gradual upturn in consumer expenditure. Breman noted that the RBNZ would review fresh economic data and broader international developments before reaching its next monetary policy determination in October.

New Zealand Faces Higher Near-Term Inflation if Global Oil Prices Remain Elevated, Says RBNZ Governor

Related Posts

New Zealand Faces Higher Near-Term Inflation if Global Oil Prices Remain Elevated, Says RBNZ Governor

Related Posts