The war has caused a doubling of diesel prices and a 35% increase in petrol, creating an inflationary impulse and downside growth risk for New Zealand.
80% of NZ's refined oil flows through Strait of Hormuz; consumers feeling pressure at pump.
Nicola Willis
Preparing for worst-case supply disruption scenarios, including building national reserves and potential voluntary demand restraint.
Notes current stockpiles are good (50-60 days) but refineries in Singapore/S. Korea may not fulfill orders.
Nicola Willis
Reserve Bank forecasts inflation could hit 4.2% (outside 1-3% target) and growth will be lower than previously expected.
Magnitude depends on conflict duration; calling for enduring ceasefire and de-escalation.
Nicola Willis
There is widespread uncertainty among global finance ministers; a disrupted oil market makes 'the whole world poorer.'
Shared concern is Strait of Hormuz reopening, but needs ceasefire first.
Nicola Willis
Strongly supports central bank independence, crediting it for stable inflation and predictable rates in NZ.