Governor: RBNZ policy contractionary after record rate hike

“It’s been a long haul from extremely low interest rates through the shock period to something that we would consider now contractionary on spending behaviour,” governor Adrian Orr. — Reuters

WELLINGTON: New Zealand central bank governor Adrian Orr said monetary policy is now contractionary after Wednesday’s record interest-rate hike.

“We can all put our hands on our hearts across the committee and say we are officially contractionary with our monetary policy at this point,” Orr told a parliamentary committee yesterday. “It’s been a long haul from extremely low interest rates through the shock period to something that we would consider now contractionary on spending behaviour.”