A simple, sensible, steady message from the RBNZ

We’ve sat down to discuss all about the RBNZ’s latest Monetary Policy Statement. February’s meeting was the first of the year, and first for new Governor Anna Breman. And we have to say she did a great job in delivering a sensible, simple message. That being: The economy is in its early stages of recovery, settings need to remain accommodative, and inflation is going back to 2%. It’s our sentiments exactly.And why are we sipping on sludgy instant coffee you may ask? Well, it was one of the findings in our latest Spending Tracker. Compared to last year, café visits were down in January. Interestingly, Kiwis opted for restaurants and bars over their local coffee spots this summer. Yet despite fewer café trips, total spending was actually up 9% on last year, meaning every visit is hitting the wallet a bit harder. So, for now, it seems we’re gritting our teeth through our homemade instant brews instead. That was just one of the findings in our latest spending tracker. The overall theme was that while spending was robust in December, we saw quite a strong pull back in consumption in January. Households are still navigating a few headwinds before consumption can return to full strength. Overall adding to the fact that indeed the economy is still in its early stages of recovery. Tune in for more insights on our take of the RBNZ and the market reaction that’s followed. Plus, more on Kiwi summer spending.Hosted by Jarrod Kerr, and Sabrina Delgado.Follow our economic commentary & insights here: https://www.kiwibank.co.nz/business-banking/thrive-hq/kiwi-economics/commentary-insights/Any views or information shared in this podcast, while given in good faith, aren't necessarily the view of Kiwibank.