RBNZ Governor Orr: Want to Avoid Doing 'Too Little Too Late'

The transcript discusses the central bank's approach to managing inflation through rate hikes, aiming to balance demand and supply. It covers the potential impacts on unemployment and economic growth, with a focus on maintaining inflation within a target range. The discussion includes global economic influences, particularly from China and the US, and the implications for New Zealand's economy. The central bank's strategy involves monitoring market rates and inflation expectations to determine future actions, with an emphasis on avoiding high unemployment and recession risks.

What is the significance of raising interest rates in relation to demand and supply?

How does the central bank's approach to interest rates impact unemployment levels?

What are the potential outcomes if inflation expectations become unanchored?

How does the economic outlook in China affect New Zealand's trade?

In what ways can global inflation impact local monetary policy decisions?

How do higher borrowing costs affect household spending in New Zealand?

What are the risks associated with a potential recession in New Zealand's economy?

What factors should be considered when determining the peak of the official cash rate?

What indicators would suggest that the central bank can pause interest rate hikes?

What is the relationship between interest rate hikes and inflation expectations?