RBNZ’s Orr says the New Zealand labour market has been very resilient

Reserve Bank of New Zealand Governor Orr appearing before parliament’s Finance and Expenditure Committee

Orr is addressing yesterday’s release of the Bank’s latest Monetary Policy Statement

  • global economic outlook has continued to improve
  • NZ labour market very resiient 
  • in the near term expects the inflation rate to be above the midpoint of its target range 
  • expects house price growth to slow dramatically in H2
  • positive outlook driven by vaccine rollout, reduced health risks 
  • projections see normalising of monetary policy by this time next year

Orr hedges that ‘normalising’ comment with if things evolve as expected. Which is fair enough … central banker types are prone to suffer from overconfidence in their forecasts, Orr doing a bit of sideways acknowledgement of this. 

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Previous posts on the RBNZ MPS for May 2021, ICYMI (read from the bottom up for chronology):
And, more:

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