NZ Treasury says cyclone reconstruction will boost economic activity, RBNZ implications

New Zealand Treasury statement:

• cyclone reconstruction will boost economic activity
• boost to demand will increase inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Termary pressures
• could lead to the RBNZ holding interest rates higher for longer

Earlier from New Zealand:

• New Zealand PPIs Q4 2022 lower than the previous quarter - reduced inflationary pressure

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The RBNZ meet on Wednesday this week, statement due at 0100 GMT, which is 8pm US Eastern time on Tuesday, 21 February 2023.

• RBNZ meet this week - flooding, cyclone events bolster the case for a pause

• Reserve Bank of New Zealand policy decision due mid-week. Preview & NZD implications.

• Reserve Bank of New Zealand rate decision on Wednesday. What levels are in play for NZDUSD

RBNZ Governor Orr faces a tough decision this week. Higher rates are needed in the fight to bring inflation under control, but the last thing the country needs right now in the midst of recovery from a natural disaster is a 50bp rate hike.