Reserve Bank of New Zealand (RBNZ) Deputy Governor Christian Hawkesby expressed confidence on Thursday that New Zealand is well-positioned to handle potential trade disruptions. Speaking in an interview, Hawkesby highlighted the country’s economic strengths, noting that New Zealand’s economy is “better balanced” and inflation remains low.
He emphasized that a stronger economy provides New Zealand with the flexibility to respond effectively to global trade shocks. “A trade war is guaranteed to slow world growth,” Hawkesby acknowledged, but also pointed out that a weaker New Zealand Dollar could act as a shock absorber, mitigating some of the potential negative effects.
Hawkesby reassured markets that New Zealand’s economic foundation would enable it to weather external trade challenges without major disruption.
In response to these remarks, the New Zealand Dollar (NZD/USD) held steady around 0.5720, marking a 0.26% increase on the day.
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