Central bank sees easing credit, calls for collaboration
The Reserve Bank (RBNZ) says the country’s recent official cash rate (OCR) cuts are flowing through the economy as intended, loosening financial conditions and improving access to credit.
Speaking at the CBA Global Markets conference, RBNZ director of financial markets Adam Richardson (pictured left) said the transmission of monetary policy is unfolding largely as expected, with lending rates trending lower and credit conditions improving.
“As with any cycle, there are some unique features that we have had to take account of when assessing the stance of monetary policy,” Richardson said in his speech.
He noted that the current environment reflects both domestic and international influences.
Locally, mortgage holders have shown a temporary preference for shorter fixed terms amid expectations of further rate cuts. Globally, higher term premia have caused a steepening in government bond yield curves, shaping the broader policy outlook.
Richardson said the Monetary Policy Committee (MPC) considers both local and global drivers to keep financial conditions consistent with RBNZ’s inflation target.
“The cash flow channel is an important and very visible part of monetary policy transmission,” he said. “However, other channels of transmission potentially play a more important role.”
For mortgage advisers, RBNZ’s comments confirm that funding costs and borrowing conditions are easing, driving renewed borrower confidence and stronger refinancing activity across the housing and business sectors.
Hawkesby: Independence balanced with partnership
In a separate address to industry stakeholders, RBNZ Governor Christian Hawkesby (pictured right) reaffirmed the importance of central bank independence while emphasising that partnership with government and industry is key to sustaining economic wellbeing.
Hawkesby said independence does not mean isolation, stressing the balance between autonomy and cooperation needed to support New Zealand’s prosperity.
“While respecting each other’s roles, a clear division of roles and responsibilities between government and central bank can enable an effective partnership, ultimately supporting the prosperity and wellbeing of New Zealanders,” he said.
He outlined the government’s role in monetary policy legislation, financial stability, and crisis resolution, and said transparency and accountability must underpin RBNZ’s operational independence.
Hawkesby also extended the notion of partnership beyond the government, calling for collaboration with the Council of Financial Regulators, financial industry, fintechs, academics, business leaders, and iwi and community groups.
“We need to work together with our Council of Financial Regulators colleagues, the financial industry, fintechs, academics, the business sector, communities, iwi and a range of other government agencies on the future of money, the future of cash, the future of banking, the future of payments, and the future of insurance.”
He concluded: “The benefits to all New Zealanders will not be achieved without collective commitment and collective action.”
What it means for advisers
Together, the two RBNZ speeches signal a more supportive credit environment and a push for greater collaboration across the financial sector.
For advisers, this means being central to policy transmission – helping clients access cheaper credit while maintaining strong links with lenders, regulators, and industry partners.
With easing rates and a renewed focus on partnership, RBNZ is setting the stage for a more connected, confident, and credit-friendly market heading into 2026.
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