RBNZ: record immigration may mean rates stay high for longer

“Clearly, it's taking some of the heat out of the labour market,” Conway said in the central bank's first appearance before the  newly reconsituted FEC following the October general election.

But it's still significantly higher than assumed as recently as RBNZ's Nov 29 monetary policy statement.

On Dec 12, Stats NZ said it estimates annual net migration reached a record 128,900 people in the year ended October, about double the pre-covid peak.

RBNZ governor Adrian Orr told the committee  the “extremely high” record levels of net migration has meant that although per-capita consumption is declining, overall demand is rising, raising the question of “do we have to maintain more restrictive for longer with monetary policy.”