RBNZ Governor Orr: Inflation and Wage Expectations Need to Decline

The video discusses the increase in inflation rates and the need for higher OCR to control inflation. It highlights global inflation trends, New Zealand's economic resilience, and challenges like labor shortages. The video also covers monetary policy measures, recession expectations, and the impact of wage growth and spending on inflation.

What was the basis point increase in the OCR mentioned in the video?

• 25 basis points

• 50 basis points

• 75 basis points

• 100 basis points

Which factor has supported New Zealand's household spending despite global uncertainties?

• High employment levels

• Increase in house prices

• Low income growth

• Decrease in debt servicing costs

What is constraining New Zealand's productive capacity according to the video?

• Excessive tourism

• Low aggregate demand

• High consumer confidence

• Labor shortages and wage pressures

What is the expected impact of reducing spending levels in New Zealand?

• Negative GDP growth

• Decrease in inflation

• Stable economic activity

• Increase in GDP growth

When is the anticipated period of negative GDP growth expected to occur?

• Last quarter of this year

• First half of next year

• First quarter of this year

• Second half of next year

What is the main challenge firms face in meeting demand according to the video?

• Chasing labor and input goods

• Excessive supply of goods

• Lack of consumer interest

• High levels of savings

What is the relationship between inflation expectations and monetary policy?

• Higher expectations reduce the need for policy action

• Expectations have no impact on policy action

• Lower expectations increase the need for policy action

• Consistent expectations reduce the need for policy action