NZIER's Christina Leung on the RBNZ Decision

The video discusses the impact of global and domestic factors on the economy, focusing on the Reserve Bank of New Zealand's (RBNZ) monetary policy decisions. It highlights the effects of interest rates on inflation, housing market, and currency fluctuations. The video also examines labor market constraints and wage pressures, emphasizing the need for further interest rate increases to manage inflation.

What is the expected action of the Reserve Bank of New Zealand regarding interest rates?

• Increase the OCR by 50 basis points

• Decrease the OCR by 50 basis points

• Keep the OCR unchanged

• Increase the OCR by 25 basis points

How do central banks typically make monetary policy decisions?

• By consulting with international banks

• By looking at historical data

• By analyzing current market conditions

• By predicting future economic trends

What is a significant concern for the RBNZ regarding the housing market?

• Rapid construction growth

• Stable house prices

• Decline in house prices

• Increasing house prices

What impact does a weaker Kiwi dollar have on inflation?

• Decreases inflation

• Has no effect on inflation

• Increases inflation

• Stabilizes inflation

What is the primary concern of the Reserve Bank regarding imported inflation?

• It only affects non-tradable goods

• It has no impact on CPI inflation

• It contributes significantly to CPI inflation

• It makes up a small portion of CPI inflation

What is a major constraint reported by businesses in New Zealand?

• Finding labor

• Low demand

• High taxes

• Lack of raw materials

What is the expected trend in wage growth in New Zealand?

• Decrease in wage growth

• Stable wage growth

• Increase in wage growth

• No change in wage growth