New Zealand Central Bank Sees Risks to Economic Recovery Amid Rising Oil Prices

New Zealand's central bank chief, Reserve Bank of New Zealand Governor Anna Breman, has warned about risks to the country's economic recovery and inflation. In a recent speech in Dunedin, Breman noted that if oil prices continue to rise, it would lead to somewhat higher near-term inflation than previously forecast.

The Reserve Bank raised its main cash rate by a quarter point to 2.75% at its September policy meeting, but projected a more gradual path for additional tightening than many in the financial markets had expected.

Breman stated that recent increases in global oil prices and longer-term interest rates reflect the challenging environment faced by New Zealand's economy.