ANZ Bank New Zealand on RBNZ's Policy Tightening Path

The video discusses the economic challenges faced by New Zealand, focusing on the Reserve Bank's approach to managing inflation and growth risks. It highlights the tight labor market, rising inflation expectations, and the impact of the housing market. The Reserve Bank's cautious approach to rate hikes is analyzed, considering business sentiment and potential economic shocks. The forecast suggests a gradual increase in the OCR, with concerns about household debt levels.

What is the significance of business sentiment in the Reserve Bank's decision-making process?

What are the implications of the household sector being very indebted?