RBNZ's Hawkesby says the Bank needs to do even more to lower inflation

<p>Reserve Bank of New Zealand Deputy Governor Christian Hawkesby: </p><ul><li>the shortage of workers is the most pressing constraint on the economy</li><li>we need to do more to lower <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1" class="terms__main-term">inflation</a></li><li>so far the higher rates have had little impact</li><li>the natural rate has risen</li><li>the Bank needs to keep up with inflation</li></ul><p>—</p><p>The RBNZ was way pout ahead of most other DM central banks with early rate hikes. Hawkesby says even more needs doing. </p><p>I posted yesterday that</p><ul><li><a href="https://www.forexlive.com/centralbank/blackrock-expect-central-banks-to-continue-to-crush-demand-to-hike-rates-into-recessions-20221213/" rel="follow" target="_blank" class="article-link text-align-start vertical-align-baseline">the RBNZ is hiking rates into a recession</a>.</li></ul><p>That message was repeated by Governor Orr earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/reserve-bank-of-new-zealand-inflation-expected-inflation-too-high-needs-to-be-reduced-20221214/" target="_blank" rel="follow">inflation, expected inflation too high, needs to be reduced</a></li></ul><p>The Reserve Bank of New Zealand next meets on February 22. Its looking like another rate hike is being baked in. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.