The governor of the Reserve Bank is confident the economy will achieve a soft landing going into next year as it continues a determined policy of an extended period of high interest rates.
As expected, the RBNZ held the official cash rate steady at 5.5 percent, but the tone of the statement and forecasts were taken as hawkish.
The peak of the OCR edged higher, the prospect of rate cuts now more likely in 2025, as growth turns negative for a short time, and inflation takes its time to retreat.
Adrian Orr told business editor Gyles Beckford that the past rate rises are working, and despite some sticky inflation and economic uncertainty sticking with the current approach is the best thing to do.
