The Reserve Bank governor has warned businesses against trying to pass higher prices on to households.<\/p>\n
Anna Breman said inflation expectations had been rising among economic forecasters and businesses – something she was not happy about.<\/p>\n
Speaking at a Business Canterbury event in Christchurch on Friday, she said firms trying to hike prices faced an uphill battle.<\/p>\n
“In our view, given that wage growth is still subdued, given that the labour market is starting to increase – but households will want to see more of that – we think it will be very difficult for firms to pass on big price increases.”<\/p>\n
Breman said\u00a0households were still struggling\u00a0with cost-of-living pressures and a weak jobs market, and higher prices would weigh on consumer spending.<\/p>\n
Meanwhile, she warned that volatility – from geopolitical tensions to developments in artificial intelligence – could still throw up surpises for inflation.<\/p>\n
She said the Monetary Policy Committee would stay responsive to those risks, but would not overreact to short-term volatility.<\/p>\n","protected":false},"excerpt":{"rendered":"The Reserve Bank governor has warned businesses against trying to pass higher prices on to households. Anna Breman…\n","protected":false},"author":2,"featured_media":293531,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":{"0":"post-293530","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/293530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=293530"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/293530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/293531"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=293530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=293530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=293530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}