The Reserve Bank of New Zealand doesn’t need to be too stimulatory with policy because it views the recent lull in economic activity as temporary, according to Chief Economist Paul Conway.
“We are seeing the weakness in the second quarter as a short-run phenomena driven by policy uncertainty that held back investment and created a bit of uncertainty for households,” he said in an interview Friday in Wellington. “We do think that’s going to dissipate. I don’t think we need to be overtly stimulatory.”