WELLINGTON: New Zealand’s central bank governor, Anna Breman, is seeing encouraging signs that will help counter the negative effects of deepening protectionism and a decline in global cooperation.
“Many countries are pushing back against this trend,” Breman said in an interview with Swedish broadcaster SVT.
“So, while there are many causes for concern, we also see nations taking active steps to counteract these developments,” added Breman.
Since the latest war broke out in the Middle East, New Zealand has concluded a new free trade agreement with India, Breman noted.
It has also entered into a special agreement with Singapore, under which both countries promise to continue exporting to each other even during times of crisis, she said.
Protectionism remains a key risk for New Zealand, with the central bank previously noting that uncertainty around global trade policy continues to cloud international economic conditions.
Policymakers have warned that rising trade barriers can hamper activity among New Zealand’s trading partners, potentially weighing on export demand and the pace of the domestic recovery.
The Reserve Bank of New Zealand or RBNZ last month kept the official cash rate unchanged at 2.25%, but only after Breman’s casting vote broke a three-to-three deadlock within the Monetary Policy Committee. — Bloomberg
