Reserve Bank of New Zealand Governor Christian Hawkesby has indicated that the central bank is now more confident its monetary policy has firmly entered stimulatory territory following a series of significant cash-rate cuts.

Speaking on Thursday New Zealand time, Hawkesby suggested that the economic recovery may occur faster and stronger than previously expected. However, he also highlighted the downside risk that households and businesses might remain overly cautious well into late 2025 and early 2026.

Hawkesby expressed concern about a global trend towards reduced central-bank operational independence. He warned that this erosion of autonomy could lead to less effective inflation control worldwide.

On the domestic front, he noted that the New Zealand dollar continues to act as a shock absorber, helping to cushion the economy against external volatility.

Original Source: Eamonn Sheridan of investinglive.com