Key focus is to stay laser-focused on our core mandate
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The Reserve Bank of New Zealand (RBNZ) Governor Anna Breman said late Monday that the key focus of the central bank is to stay laser-focused on our core mandate. Key quotes The Mandate is very clear that we should focus on keeping inflation low and stable. We aim to support a healthy, strong and growing economy while keeping inflation low and stable. Ideally, would want less substantial swings in house prices over time. We will face a global environment characterised by uncertainty. Recent rate cuts will improve growth in New Zealand. Market reaction At the time of writing, the NZD/USD pair is trading 0.19% lower on the day to trade at 0.5727. RBNZ FAQs The Reserve Bank of New Zealand (RBNZ) is the country’s central bank. Its economic objectives are achieving and maintaining price stability – achieved when inflation, measured by the Consumer Price Index (CPI), falls within the band of between 1% and 3% – and supporting maximum sustainable employment. The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee (MPC) decides the appropriate level of the Official Cash Rate (OCR) according to its objectives. When inflation is above target, the bank will attempt to tame it by raising its key OCR, making it more expensive for households and businesses to borrow money and thus cooling the economy. Higher interest rates are generally positive for the New Zealand Dollar (NZD) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken NZD. Employment is important for the Reserve Bank of New Zealand (RBNZ) because a tight labor market can fuel inflation. The RBNZ’s goal of “maximum sustainable employment” is defined as the highest use of labor resources that can be sustained over time without creating an acceleration in inflation. “When employment…
Filed under: News - @ December 2, 2025 12:28 am