Reserve Bank of New Zealand Governor Christian Hawkesby said the central bank is now more confident that monetary policy has shifted firmly into stimulatory territory after a series of substantial cash-rate cuts.
Speaking on Thursday, NZ time, he suggested the economic recovery could come through “faster and stronger” than previously expected, while acknowledging the downside risk that households and businesses remain overly cautious into late 2025 and early 2026.
Hawkesby also raised concerns about a global trend toward eroding central-bank operational independence, warning that diminished autonomy could leave inflation less controlled worldwide.
Domestically, he noted that the New Zealand dollar continues to function as a shock absorber, helping cushion the economy through external volatility.
