RBNZ governor says Middle East flare-up reinforces inflation concerns
Reserve Bank of New Zealand Governor Anna Breman said developments in the Middle East over the past 24 hours have reinforced the central bank's concerns about inflation. The remarks come as the US-Iran conflict continues to unsettle global energy markets.
Reserve Bank of New Zealand Governor Anna Breman said developments in the Middle East over the past 24 hours have reinforced the central bank's concerns about inflation. Breman's comments followed a fresh flare-up in the conflict between the United States and Iran.
Breman said the rising geopolitical tension was adding pressure to global energy prices, which could feed through to New Zealand's economy via import costs. The bank recently raised its official cash rate to 2.5%, and officials say they continue to monitor the inflation outlook closely.
Economists say a prolonged period of tension in the Middle East could push the RBNZ toward a more cautious stance on interest rate policy. The bank said it would keep a close watch on developments in global energy markets ahead of its coming meetings.
Read next
Strait of Hormuz shipping grinds to a halt as US, Iran resume fighting
Shipping traffic through the Strait of Hormuz has plunged as fighting between the United States and Iran resumed, disrupting one of the world's most critical energy corridors. Brent crude has held relatively steady despite the renewed hostilities.
Iran, US to continue 'technical talks' after Trump declares ceasefire over
Iran Strikes US Interests in Kuwait, Bahrain and Qatar, Killing 14
New Zealand Banks Raise Rates After RBNZ Lifts OCR to 2.5%
