RBNZ’s Conway warns on purchasing power as Iran shock clouds NZ outlook, GDP 4cast slashed

Near-term bearish NZD bias as growth risks rise and policy remains constrained. Rates likely on hold despite weaker activity, with inflation uncertainty limiting easing expectations and increasing volatility in rate pricing. Near-term bearish NZD bias as growth risks rise and policy remains constrained. Rates likely on hold despite weaker activity, with inflation uncertainty limiting easing expectations and increasing… Summary: . Conway frames cost of living as purchasing power, not just inflation, with NZ prices structurally high vs OECD Pandemic inflation lifted price levels ~26%, while income growth only just ... Summary: Conway frames cost of living as purchasing power, not just inflation, with NZ prices structurally high vs OECD Pandemic inflation lifted price levels ~26%, while income growth only just kept pace Real wages modestly higher, but purchasing power still only around OECD average Middle East conflict flagged as a new inflation risk via energy and shipping costs Monetary policy can anchor inflation but cannot fix affordability alone — productivity… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.