Category: AM-NC

Source: Radio New Zealand

• RBNZ governor says NZ is likely to see higher short-term inflation
• Rates could rise if there are effects on medium-term inflation or inflation expectations
• Economic growth likely to be dampened

The Reserve Bank governor is warning of higher inflation and weaker economic growth due to the Middle East crisis.

The Israel and United States-led war against Iran has sent global energy prices soaring due to the closure of the Strait of Hormuz, and attacks on key energy infrastructure in the Gulf.

Economists had already warned of the inflationary impact facing the New Zealand economy.

In speech notes published on Tuesday, Reserve Bank (RBNZ) governor Dr Anna Breman echoed that sentiment.

“We are likely to see higher headline inflation over the near term, and somewhat weaker growth momentum,” Breman said.

Annual inflation was at 3.1 percent in the December quarter, above the RBNZ’s 1-3 percent target band.

The remarks come two weeks ahead of the RBNZ’s next monetary policy decision, where the Official Cash Rate is expected to remain on hold.

“A short-lived disruption and a temporary increase in petrol prices can – and should – be looked through from a monetary policy perspective if it is unlikely to have an impact on medium-term inflation outcomes,” Breman said.

“For this type of disruption, we would likely see higher inflation over the next few quarters, along with squeezed real incomes and demand.”

She said the peak impact of monetary policy on inflation took about six to nine quarters.

“So, tightening monetary policy in response to a short-lived disruption would only dampen growth without materially improving near-term inflation outcomes,” Breman said.

“If there are effects on medium-term inflation or inflation expectations, the appropriate policy response could be to increase interest rates to prevent these second round effects.”

Breman said “it is critical” for monetary policy to be forward-looking and focused on medium-term inflation pressures.

She said global supply chains were feeling the effects of the conflict, and it “will take time for the full effects of this shock on the global economy to play out”.

“We should try to avoid reacting too early to near-term inflation pressures that monetary policy can do little about – or reacting too late if above-target inflation becomes embedded in the economy.”

High near-term inflation, weaker growth

Breman said the higher short-term inflation spike would primarily be driven by higher petrol and diesel prices, which made up about 4 percent of the Consumer Price Index.

Higher fertiliser prices were another factor, and she believed it could take up to nine months to fully pass through to supermarket prices.

“Autumn fertiliser requirements are already on-hand in New Zealand, and fertiliser imports usually decrease over the winter months,” Dr Breman said.

“We expect fertiliser use to pick up for spring planting, which is when we may see more direct impacts on farms.”

Breman said the conflict meant New Zealand’s economic growth momentum would be “somewhat weaker” than the RBNZ’s previous assessments.

The bank’s February Monetary Policy Statement published forecasts of GDP growth of 1.1 percent in the March quarter, and 0.5 percent in the June quarter.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/24/watch-live-reserve-bank-governor-anna-breman-warns-of-higher-inflation-lower-growth/

Source: Radio New Zealand

Air New Zealand says four return flights to Samoa for April and May have been cancelled because of rising fuel costs.

The cancellations are part of scheduled changes that the airline had announced at the start of this month.

Air New Zealand said it had nine services to Samoa each week and described the change as “minimal”.

It said like other airlines it was dealing with unprecedented volatility with jet fuel prices due to the conflict in the Middle East and was adjusting schedules to manage the impact.

Air New Zealand earlier said that it would cancel around 1100 flights from early March through until early May, but that most passengers would be moved to flights on the same day.

‘We might need to be careful with that jet fuel’ as supplies reduce

Airlines are pleading for assurance from the government, as the supply of jet fuel could be limited due to the conflict in the Middle East.

Board of Airline Representatives chief executive Cath O’Brien told Morning Report that New Zealand is a known as a “fuel risk destination”.

New Zealand had a history of experiencing issues with jet fuel allocation, she said.

“We saw that in 2017. We had the pipeline rupture. We saw it in 2022 and 2023 when we had insufficient jet fuel imported into the country.”

She was concerned that there had been no information, as suppliers could give 12 hours notice of rationing but airlines could not respond in the same way as usual because if there was limited jet fuel in New Zealand, the same would apply elsewhere.

“If we knew how a scarce resource of jet fuel might be managed, then we would be able to say how airlines might respond and whether that jet fuel is allocated more or less to long haul, or short haul, or freighters, or licensed flights, or regional services.

“At the moment, we’re kind of operating in this dearth of information.”

However, O’Brien said airlines were comfortable that there was currently a sufficient fuel supply, and could continue their usual operations.

“If we get to a point, as we have in the past in New Zealand, where jet fuel is 10 days away from arriving and we have a limited amount to get us through, then we might need to be careful with that jet fuel that we have as we wait for the next shipment.

“I think that’s increasingly likely as an outcome of the conflict up in the Middle East … so we need to know how we will manage that delay.”

Meanwhile, regional airlines are warning key air links are under growing pressure due to the rising fuel prices and operating costs.

Originair is poised to scrap its Wellington to Westport route, while Air Chathams has introduced a $20 fuel surcharge per ticket.

Barrier Air chief executive Grant Bacon said fuel price rises so far equated to about $15 extra per person on an average Wellington to Tākaka Golden Bay Air flight.

Reuters reports that jet fuel prices have soared from US$85-90 per barrel to US$150-200 per barrel in recent days leading to a number of airlines including Air New Zealand increasing fuel surcharges.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/24/air-new-zealand-cancels-four-return-flights-to-samoa-as-airlines-call-for-clarity/

Source: Radio New Zealand

Retailer KMD Brands has rejected a proposal from a US surfwear company to slice off its Rip Curl label and marry the two brands together.

The NZX and ASX-listed company disclosed the details of the concept, suggested by California-based Stokehouse, on Tuesday following a report in the Australian Financial Review.

KMD Brands says the proposal would see Rip Curl de-merged into a separate dual-listed company, then merged with Stokehouse to create a new company.

“The concept proposed by Stokehouse creates no value for shareholders and is challenging from an execution standpoint,” KMD Brands chairman David Kirk said.

“In addition, the combination of multiple surf brands that directly compete with each other is not a strategy that has proven effective.”

If the deal had gone ahead as proposed, Stokehouse would own 22 percent of the new business, and Stokehouse’s chief executive would also head up the entity, according to KMD’s market update.

“This proposed ownership structure is misaligned with the earnings delivered by the Stokehouse and Rip Curl businesses given Stokehouse’s immaterial contribution to combined EBITDA [earnings before interest, taxes, depreciation and amortisation], and would unfairly dilute KMD Brands shareholders,” KMD said in a statement.

In addition to Rip Curl, KMD Brands also owns Kathmandu and Oboz brands. Stokehouse’s core brand is surf label Vissla, and is run by former Billabong chief executive Paul Naude.

The dual-listed company said it carefully considered the concept but had decided it was not in the best interest of shareholders and would instead continue with its current strategy.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/24/rip-curl-de-merger-bid-rejected/

Source: Radio New Zealand

Airlines are pleading for assurance from the government, as the supply of jet fuel could be limited due to the conflict in the Middle East.

Board of Airline Representatives chief executive Cath O’Brien told Morning Report that New Zealand is a known as a “fuel risk destination”.

New Zealand had a history of experiencing issues with jet fuel allocation, she said.

“We saw that in 2017. We had the pipeline rupture. We saw it in 2022 and 2023 when we had insufficient jet fuel imported into the country.”

She was concerned that there had been no information, as suppliers could give 12 hours notice of rationing but airlines could not respond in the same way as usual because if there was limited jet fuel in New Zealand, the same would apply elsewhere.

“If we knew how a scarce resource of jet fuel might be managed, then we would be able to say how airlines might respond and whether that jet fuel is allocated more or less to long haul, or short haul, or freighters, or licensed flights, or regional services.

“At the moment, we’re kind of operating in this dearth of information.”

However, O’Brien said airlines were comfortable that there was currently a sufficient fuel supply, and could continue their usual operations.

“If we get to a point, as we have in the past in New Zealand, where jet fuel is 10 days away from arriving and we have a limited amount to get us through, then we might need to be careful with that jet fuel that we have as we wait for the next shipment.

“I think that’s increasingly likely as an outcome of the conflict up in the Middle East … so we need to know how we will manage that delay.”

Meanwhile, regional airlines are warning key air links are under growing pressure due to the rising fuel prices and operating costs.

Originair is poised to scrap its Wellington to Westport route, while Air Chathams has introduced a $20 fuel surcharge per ticket.

Barrier Air chief executive Grant Bacon said fuel price rises so far equated to about $15 extra per person on an average Wellington to Tākaka Golden Bay Air flight.

Reuters reports that jet fuel prices have soared from US$85-90 per barrel to US$150-200 per barrel in recent days leading to a number of airlines including Air New Zealand increasing fuel surcharges.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/24/operating-in-this-dearth-of-information-airlines-pleading-government-for-assurance/

Source: Radio New Zealand

• RBNZ govenror says NZ is likely to see higher short-term inflation
• Rates could rise if there are effects on medium-term inflation or inflation expectations
• Economic growth likely to be dampened

The Reserve Bank governor is warning of higher inflation and weaker economic growth due to the Middle East crisis.

The Israel and United States-led war against Iran has sent global energy prices soaring due to the closure of the Strait of Hormuz, and attacks on key energy infrastructure in the Gulf.

Economists had already warned of the inflationary impact facing the New Zealand economy.

In speech notes published on Tuesday, Reserve Bank (RBNZ) governor Dr Anna Breman echoed that sentiment.

“We are likely to see higher headline inflation over the near term, and somewhat weaker growth momentum,” Breman said.

Annual inflation was at 3.1 percent in the December quarter, above the RBNZ’s 1-3 percent target band.

The remarks come two weeks ahead of the RBNZ’s next monetary policy decision, where the Official Cash Rate is expected to remain on hold.

“A short-lived disruption and a temporary increase in petrol prices can – and should – be looked through from a monetary policy perspective if it is unlikely to have an impact on medium-term inflation outcomes,” Breman said.

“For this type of disruption, we would likely see higher inflation over the next few quarters, along with squeezed real incomes and demand.”

She said the peak impact of monetary policy on inflation took about six to nine quarters.

“So, tightening monetary policy in response to a short-lived disruption would only dampen growth without materially improving near-term inflation outcomes,” Breman said.

“If there are effects on medium-term inflation or inflation expectations, the appropriate policy response could be to increase interest rates to prevent these second round effects.”

Breman said “it is critical” for monetary policy to be forward-looking and focused on medium-term inflation pressures.

She said global supply chains were feeling the effects of the conflict, and it “will take time for the full effects of this shock on the global economy to play out”.

“We should try to avoid reacting too early to near-term inflation pressures that monetary policy can do little about – or reacting too late if above-target inflation becomes embedded in the economy.”

High near-term inflation, weaker growth

Breman said the higher short-term inflation spike would primarily be driven by higher petrol and diesel prices, which made up about 4 percent of the Consumer Price Index.

Higher fertiliser prices were another factor, and she believed it could take up to nine months to fully pass through to supermarket prices.

“Autumn fertiliser requirements are already on-hand in New Zealand, and fertiliser imports usually decrease over the winter months,” Dr Breman said.

“We expect fertiliser use to pick up for spring planting, which is when we may see more direct impacts on farms.”

Breman said the conflict meant New Zealand’s economic growth momentum would be “somewhat weaker” than the RBNZ’s previous assessments.

The bank’s February Monetary Policy Statement published forecasts of GDP growth of 1.1 percent in the March quarter, and 0.5 percent in the June quarter.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/24/reserve-bank-governor-anna-breman-warns-of-higher-inflation-lower-growth/

Source: Radio New Zealand

ASB and Kiwibank have become the latest to increase interest rates, on the back of market fears the rising oil prices may push up inflation.

Wholesale rates have lifted since war broke out, even though the Reserve Bank has not yet moved the official cash rate.

Kiwibank is increasing its special one-year rate from 4.49 percent to 4.59 percent, its three-year rate from 5.25 percent to 5.35 percent, its four-year rate from 5.69 percent to 5.79 percent and its five-year rate from 5.79 percent to 5.89 percent.

Standard rates shift by a similar amount.

It is also lifting its term deposit rates by 20 basis points for one year, to 3.75 percent, 10 basis points for two years, to 4.1 percent, and 30 basis points for three- to five-year terms, to 4.4 percent, 4.6 percent and 4.7 percent, respectively.

ASB is cutting its six-month rate and increasing longer home loan terms and term deposit rates.

ASB’s two and three-year fixed home loan rates have increased by 14 and 20 basis points respectively, while the six-month rate is down 10 basis points.

It will offer 4.59 percent for a year, 4.49 percent for six months, 5.09 percent for two years and 5.69 percent for five years.

ASB has also lifted term deposit rates by up to 50 basis points across 12-month to five-year terms, including a five-year rate of 5 percent. Its one-year rate is 3.7 percent, up 20 basis points.

ASB’s executive general manager personal banking Adam Boyd said it was driven by market pricing.

“Wholesale interest rates have remained volatile and continue to trend higher. These movements reflect heightened global economic uncertainty and renewed pressures across global markets. For savers, the same environment means stronger returns, and it’s worth considering how your money could work harder.

“We understand that any increase to home loan rates is significant for households. We encourage customers to talk to us about their situation. There’s no one-size-fits-all answer, and we want to help people find the approach that works best for them.”

Westpac and ANZ announced increases last week.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/24/more-banks-hike-interest-rates-as-fuel-threatens-to-push-up-inflation/