Reserve Bank of New Zealand Aims to Lower Interest Rate Gradually

The Governor of the Reserve Bank of New Zealand (RBNZ), Adrian Orr, stated that the central bank intends to reduce the key interest rate over the next year, but the process will be slow and cautious. He emphasized the importance of achieving sustainable inflation wherever possible before making any significant changes to the country's monetary policy.

In his statement, Orr highlighted the need for careful evaluation of the economic situation, stressing that despite the impact of rising inflation on consumers, decisions regarding rate cuts will be based on economic growth and price stability.

The bank is closely monitoring the state of the global economy, as well as key indicators that could influence its decisions. According to Orr, it is essential to maintain a balance so as not to exacerbate inflationary pressure, which remains high. This strategy will help avoid sharp fluctuations in the economy, thereby supporting public confidence in the financial system.

The RBNZ already forecasts that as the interest rate declines, economic growth will gradually begin to recover, potentially leading to improved conditions for businesses and an increase in consumer spending. However, Orr emphasizes that the process will be gradual, based on data analysis and market responses to changes. He also suggested that any decisions regarding currency issuance will depend on the local economic situation and the needs of the population.

In conclusion, it is important to note that such a cautious position from the central bank reflects its commitment to ensuring stability in the economy while being prepared to consider all potential risks and uncertainties in statistical indicators.

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