RBNZ Chief Economist Conway: Inflation Still Too High

The unanimous committee backing for further hikes, paired with an acknowledgment of labor-market excess capacity, points to a central bank prioritizing inflation credibility over near-term growth support. The explicit warning that cost shocks could broaden into general inflation is the key framing: it signals the bar for pausing remains high even as domestic demand softens. For rate-sensitive sectors and the currency, the question worth watching is whether incoming data validate that transmission risk or show cost pressures fading before policy tightens further.