VOT Research Desk
Christian Hawkesby, Deputy Governor of the Reserve Bank of New Zealand (RBNZ), stated on Wednesday that we need to do significantly more to cut inflation.
The greatest significant restraint on the economy is a labor shortage. So far, the rising interest rates have had little effect.
The natural rate of growth has increased. The bank must maintain pace with inflation. Hawkesby’s hawkish comments from the RBNZ are helping to buffer the fall in the NZD/USD pair.
At the time of writing, the Kiwi pair is recovering to about 0.6450, but down 0.30% on the day.
