NZIER's Leung on RBNZ Policy, NZ Economy

The video discusses the Reserve Bank of New Zealand's decision to hold interest rates steady, citing easing capacity pressures and labor shortages. It explores the impact of past rate hikes on mortgages and consumer spending, predicting a slowdown in retail activity. The discussion also covers the trajectory of inflation, which remains sticky, and the technical recession status of New Zealand's economy. Factors such as net migration and government spending are highlighted as potential contributors to inflation persistence.

How does the labor market condition affect inflation expectations in New Zealand?

What does the term 'technical recession' mean in the context of the New Zealand economy?

What role does net migration play in the New Zealand economy as per the discussion?