“[If] the global economy turns sharply down, materially weakening demand and the inflation outlook, this could alter the desired stance, including leading to monetary easing.”
It’s prudent to keep all options on the table, but these comments raised eyebrows last week.
When questioned at the press conference, Governor Anna Breman wasn’t keen to specify what could cause that downturn.
But on the Economy of Everything podcast this week, Liam Dann and Tamsyn Parket were happy to run through the big events that will be worrying the RBNZ.
“If you look at what could really turn this world around in the next six weeks, it would be a Wall Street crash,” Dann said.
There was worrying volatility on United States markets, particularly the tech-heavy Nasdaq Index, he said.
The stock market float of shares in artificial intelligence (AI) company Anthropic looked increasingly as if it would…
