Greg had the headline remarks from Reserve Bank of New Zealand Governor Orr earlier:
Orr was speaking to a committee of the NZ parliament.
He addressed the very weak Q3 GDP, which showed contraction for the economy:
He said that the surprisingly weak data was a "complex situation", and the Bank will have plenty to consider before the next interest rate decision:
- employment data will weigh into their decision
- interest rates continue to constraint spending
- the RBNZ remains wary of inflationary surprises
- "There's still a long way to go, particularly with the level of core inflation, or homegrown inflation, still remaining too high,"
- One of the biggest challenges is that migration in New Zealand is currently at record high levels, which is boosting overall spending and putting pressure on demand and core inflation
RBNZ Governor Orr
