NZ Finmin Robertson: New Zealand's short-term inflation challenge is significant
|Finance Minister Grant Robertson is making a pre-Budget speech to the Wellington Chamber of Commerce, further pushing along Labour’s fiscal agenda for the year.
The speech comes ahead of both the Budget, and the country’s first emission reduction plan which will be unveiled by James Shaw next Monday. Before then, we will have inflation expectations which will bring the central bank sentiment into the forex market for the day ahead.
Robertson has said that New Zealand's short-term inflation challenge is significant and that the economy is facing capacity constraints, and they will set fiscal policy in place with that in mind.
- He says the economy is in a strong position to weather whatever storm.
- Not signalling that they are about to enter a recession. Will return to surplus in 2024/25.
- While inflation is spiking, forecasts continue to show it coming down in the second half of the year.
- This doesn't stop the impacts rolling on, with interest rates increasing he could not rule out New Zealand growth would stall in 2023.
- Believed the country's economy remained in a strong position.
- New Zealand economy was well placed, with low unemployment, which provides a buffer in terms job security for people, and room for ongoing investing, with foreign investment interest remaining strong.
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