The visit followed the Reserve Bank’s September Monetary Policy Statement (MPS), which noted that while New Zealand’s economic recovery is underway, it is not being felt evenly across the country.
“The recent GDP figures showed economic growth was 0.2% in the 3 months to June, despite the effects of high oil prices and other global headwinds. Other data suggest that the economic recovery is continuing in the current quarter but remains uneven.
Data point to stronger economic conditions in parts of the South Island, supported by resilient export activity, lower unemployment, and stronger housing market performance than many areas elsewhere in New Zealand.
“We expect the economic recovery to strengthen and broaden, reflecting a resilient export sector and gradual increase in household spending,” Governor Breman said.
“As the recovery gathers pace, conditions in the labour market should improve. Purchasing power will increase as inflation returns to the 2% mid-point.”
However, Governor Breman noted that significant risks to the economic outlook remain.
“Recent increases in global oil prices and longer-term interest rates reflect the challenging environment we face. If higher oil prices persist, they are expected to result in somewhat higher near-term inflation than we assumed in the September Statement.”
“As always, we will assess incoming data and global developments ahead of our next decision in October and remain focused on the outlook for inflation over the medium term.”
Governor Breman said direct engagement helped bring context and nuance to the economic data.
“While national economic data provide an important broader picture of economic activity, the specific conditions can differ significantly between regions, sectors and communities.
Every region has its own story. Meeting people face-to-face helps us understand how current conditions are affecting businesses and communities, how they are responding, and the extent that the economic recovery is being felt.”
During the visit, Reserve Bank leaders met with sector representatives from education, technology and innovation, and energy, as well as the wider business community.
“These conversations help ensure we remain connected to the people, businesses and communities our decisions ultimately affect.”
The Dunedin visit formed part of the Governor’s ongoing regional engagement programme, which is designed to strengthen connections with communities across New Zealand, improve understanding of regional economic conditions, and gather perspectives from a diverse range of sectors and stakeholders.
More information
September 2026 Monetary Policy Statement
