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Speaker 1: So the RBNZ Governor Arna Breman's broken his silence on

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Speaker 1: the fuel situation.

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Speaker 2: We are likely to see higher headline inflation over the

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Speaker 2: near term and somewhat weaker growth momentum. I will not

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Speaker 2: rule out neither retakes nor red cuts because of the

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Speaker 2: uncertainty and the global environment.

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Speaker 1: The message to business, we're watching price increases closely, We're

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Speaker 1: watching wage hikes, potential wage hikes closely. Can't get into

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Speaker 1: an inflation feeding spiral. Here Catherine bed was listening to

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Speaker 1: the speech and business and z joys us this morning.

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Speaker 3: Morning. Catherine, good morning.

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Speaker 1: So business is going to hike prices.

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Speaker 3: Look, I believe they will hold off as long as

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Speaker 3: they possibly can. And you know, there was discussion about

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Speaker 3: for supplies to make those any fuel increases quite transparent,

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Speaker 3: so that you know they're not kind of getting baked in,

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Speaker 3: so very much holding off. We had supermarkets in the room,

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Speaker 3: we had ports, we had banks talking about how their

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Speaker 3: customers are handling this. So obviously this all depends how

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Speaker 3: long it goes on. If it's not too long, then

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Speaker 3: it was actually quite a reassuring speech. I think, you know.

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Speaker 3: She pointed out that banks are well capitalized and we

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Speaker 3: are in the early stages of economic recovery, with manufacturing

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Speaker 3: performing quite well. Service is slower to improve. But I

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Speaker 3: guess the point being that it's not a hot economic market,

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Speaker 3: so if this is inflationary, it's kind of further down

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Speaker 3: the track, was the message.

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Speaker 1: I think, Yeah, in short term they can look through it,

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Speaker 1: but anything medium or longer term than have to start

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Speaker 1: doing something serious about it.

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Speaker 3: Yeah, And I think the message was that that's not now,

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Speaker 3: and that New Zealand's not in a bad place to

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Speaker 3: you know, to weather it. They will be super focused

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Speaker 3: on inflation to make sure that it doesn't start to

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Speaker 3: get baked in. And you know, she kind of made

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Speaker 3: the point which everybody knows that an inflation re environment

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Speaker 3: really steals everybody's purchasing power, and it's it's not good.

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Speaker 3: So but yeah, look, I think it was. It was positive.

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Speaker 3: It was quite well received, and businesses are preparing for

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Speaker 3: the worst obviously, but that things at the moment are

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Speaker 3: not too bad, and that the feeling I got was that,

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Speaker 3: particularly for some of the big businesses, you know, they

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Speaker 3: could probably get through to about the middle of the

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Speaker 3: year before things start to go quite pear shaped, and

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Speaker 3: hopefully that doesn't come about because the situation.

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Speaker 1: Gets sorted one hundred percent. Appreciate your time this morning,

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Speaker 1: Catherine bed Business end Z.

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Speaker 3: For more from Early Edition with Ryan Bridge.

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Speaker 1: Listen live to News Talks it Be from five am weekdays,

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