Reserve Bank of New Zealand (RBNZ) Deputy Governor Christian Hawkesby said on Wednesday that “we need to do even more to lower inflation.
The shortage of workers is the most pressing constraint on the economy.
So far the higher rates have had little impact.
The natural rate has risen.
The bank needs to keep up with inflation.
The hawkish comments from RBNZ’s Hawkesby are helping cushion the downside in the NZD/USD pair. The Kiwi pair is recovering to near 0.6450, still down 0.30% on the day, at the time of writing.