RBNZ flags potential rate hikes over energy cost risks
Governor Anna Breman says the bank may raise rates if energy shocks impact long-term inflation. Markets now price in a potential 25 basis point hike for May.
Xurve View
Xurve View
The head of the central bank in New Zealand stated on Tuesday that monetary policy would likely overlook temporary spikes in energy costs, though higher interest rates remain a possibility if inflation becomes entrenched. Governor Anna Breman noted that the duration of energy shocks, specifically those stemming from conflict in the Middle East, is a critical factor in balancing inflation risks against economic growth.
