© Stocksak. FILE PHOTO – Governor Adrian Orr of the Reserve Bank of New Zealand (RBNZ), is seen during an interview at the bank, Wellington, New Zealand, on April 16, 2019. REUTERS/Charlotte Greenfield
By Lucy Craymer
WELLINGTON (Stocksak), -On Thursday, Adrian Orr, New Zealand’s central bank governor said that although the country is well-positioned to face challenges, inflation remains too high.
Orr stated that the central banks had their eyes on meeting the inflation target of 1%-3%.
“New Zealand’s position is good, but inflation is still too high in an overall sense,” he said to the Institute of Finance Professionals of New Zealand. The speech was also posted to the website of the central bank.
In October, New Zealand’s central banks raised interest rates to a seven year high. They also promised more pain as they struggle to control inflation at close to three decades highs in an already stretched economy.
Orr added that New Zealand’s financial system remains well placed to support the economy — with banks’ capital and liquidity positions strong, and profitability and asset quality high.
He said that there would be stress in the business and households as interest rates and asset values adjust.
The New Zealand central bank will release its twice-yearly Financial Stability report on November 2.