Author: MIL-OSI Publisher

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Federated Farmers – Survey reveals shocking cost of consents

Source: Federated Farmers

A new survey shows the cost and complexity of resource consents have reached breaking point, highlighting the need for urgent Government intervention.
Federated Farmers’ Survey on Resource Consents found four out of five farmers are worried about gaining or renewing consents, and the average bill for gaining a new consent has hit nearly $45,000. Renewal permits aren’t far behind, averaging $28,000.
“Our survey makes for incredibly sobering reading, as it’s shown us the true scale of the consenting problems,” Federated Farmers freshwater spokesperson Colin Hurst says.
“It’s staggering to learn the average total cost farmers are being stung with for regional council and consultancy fees is $45,000.
“It’s even worse for Canterbury farmers, who are forking out over $60,000.
“These numbers paint a damning picture of a system that’s simply not working.”
Hurst says it’s getting harder and more expensive every year to get a consent to keep farming, and there’s no clear reason why.
“The whole process has become so uncertain and complex that most farmers now must rely entirely on consultants and expert advisors.
“Even then, there’s no guarantee they’ll get a fair or timely decision.
“Farmers and growers are exhausted, stressed out and losing faith in a system that seems to prioritise paperwork over environmental outcomes.”
Completed by Federated Farmers members nationwide in September and October, the survey shows frustration among farmers is boiling over.
“Many farmers described the consenting process as ‘a rort’, ‘ridiculous’, ‘extortion’, and ‘a nightmare’,” Hurst says.
“How are they supposed to have the confidence to keep investing in their businesses if they don’t even know whether they’ll be allowed to keep farming next year?
“The simple answer is they can’t. The uncertainty is pulling the handbrake on growth and productivity right across the sector.”
With thousands of consents due to expire in the coming months, Federated Farmers says the situation is now urgent and requires immediate action.
“The Government’s plans to reform the RMA and replace it with a more workable framework are welcome – but that won’t happen overnight,” Hurst says.
“We’re staring down the barrel of even more stress and confusion if nothing changes.
“Farmers need certainty right now. Let’s end the consent chaos and give farmers the certainty they deserve.”
Federated Farmers is calling on the Government to allow all existing consents to roll over until the new system is in place.
“That would be a simple, practical step to save farmers time, money and stress,” Hurst says. 
Key Findings
  • Effluent consents are the most common (24%), followed closely by farming (land use) and water take/irrigation (both 21%).
  • 38% of respondents applied for a resource consent in the past year, indicating frequent engagement, while 31% applied over five years ago, suggesting varied consent durations.
  • The average spend on regional councils for consents was $17,400 with Auckland ($24,300) and Canterbury ($25,000) being the most expensive regions.
  • District council costs averaged $9,000, with Canterbury districts ($15,800) the most expensive.
  • Consultant costs averaged $27,500 nationally, with Canterbury ($47,700) again the highest.
  • 40% plan to apply for or renew consents in the next 24 months, expecting to spend an average of $28,574 on consultants alone.
  • Nearly four out of five farmers (78%) are concerned about gaining or renewing resource consents, reflecting anxiety about regulatory hurdles.
  • 40% expect to pay fees to affected parties (e.g. iwi), with 31% unsure, indicating uncertainty around additional costs.
  • Qualitative comments highlight frustration with excessive costs, bureaucratic delays, council incompetence, inconsistent implementation between council planners, iwi consultation fees, council use of consultants and farmers paying for the training of council planners. Farmers and growers also noted a lack of environmental logic and are calling for significant reform.
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Transporting New Zealand calls for more ambitious high productivity truck reforms

Source: Ia Ara Aotearoa Transporting New Zealand

Transporting New Zealand calls for more ambitious high productivity truck reforms
Road freight association Transporting New Zealand says that getting higher capacity trucks on the road is essential to boosting freight productivity, as the Government opens consultation on simplifying heavy vehicle permitting.
The proposed changes would remove the requirement for 50MAX trucks to have a NZTA or Council issued permit and the need to carry a yellow sign. 50MAX trucks will still be limited to operating on routes that are able to properly accommodate them.
Transporting New Zealand Chief Executive Dom Kalasih says the proposals are predominantly administrative changes and they won’t deliver the productivity gains the country needs.
“This consultation is a step in the right direction, but we need the Government to be much more ambitious with these productivity reforms.” says Kalasih.
“Having higher capacity, more productive trucks on our network will help meet the Government’s goal of doubling the value of exports by 2034, support emissions reduction targets, and improve safety outcomes.”
“New Zealand is falling behind other countries that are already making changes in this area. We should be taking every opportunity we can to improve freight productivity.”
“The Ministry of Transport has previously estimated the last substantive high productivity motor vehicle (HPMV) reforms saved freight operators between $60 to $80 million in 2013 alone, and by 2016 there were average productivity gains of 14 to 20 per cent, avoiding tens of millions of kilometres of standard heavy truck trips.”
“Now is an ideal opportunity to take advantage of technological improvements. Carrying a forest of permit papers in the truck shouldn’t be necessary nowadays. It’s critical that we use this opportunity to make meaningful change that will deliver real benefits. Unfortunately, the current proposals are simply not going to do that”.
“We need to be shifting more freight, with fewer trips, in a practical and cost-effective manner.”
“Freight volumes are expected to increase by 55 percent over the next 20 years and there’s only so much network capacity available. The Government needs to support freight operators to get higher capacity vehicles into their fleets. The changes shouldn’t be limited to 50MAX trucks, but also consider other high productivity heavy vehicle types.”
Transporting New Zealand is calling on the Government to:
– Take a more open-minded and risk-based approach to considering different higher productivity vehicles, including road train style units for appropriate routes and tasks.
– Increase the length of HPMV permits for operators who can demonstrate best practice compliance and safety practices.
– Increase HPMV network access by strengthening key bridges and roads that high-capacity trucks can’t currently access.
Editor's notes on HPMVs and 50MAX trucks:
High Productivity Motor Vehicles (HPMV) are a special class of vehicles designed to carry more freight. HPMVs must carry divisible loads, exceed a mass of 44,000kg, and/or the maximum length for standard vehicles. They must operate within higher individual axle and axle group limits set out in the Vehicle Dimensions and Mass Rule and be no wider or higher than general access vehicles. They operate under permits for routes that are able to accommodate the additional mass and/or length.
One of the main types of HPMV is 50MAX, a high productivity motor vehicle truck and trailer combination. 50MAX trucks are slightly longer than standard 44-tonne vehicles (up to about 44m, depending on their design and axle configuration), have additional axles (nine in total), and can have a total gross laden weight of up to 50 tonnes. This additional axle spreads the load, giving it a similar pavement impact to standard 44-tonne vehicles.
NZTA has approved a set of designs for 50MAX vehicles.
Most of the 50MAX vehicles can operate on most local roads and state highways, but they cannot use certain roads and bridges due to loading restrictions. Routes are on state highways. This can require trucks to go on lengthy diversions, or not be able to complete certain trips at all.
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Education and Politics – New curriculum regressive and fractured

Source: Sexual Wellbeing Aotearoa

Information on what schools and teachers should include in relationships and sexuality education was released yesterday as part of the Health and Physical Education. The new curriculum is regressive and fractured, failing to give young people the comprehensive knowledge base they need to navigate their sexual health and relationships.
Chief executive Jackie Edmond says this curriculum does not speak to the lived reality of young people in the 21st century.
“If young people are not given evidence-based information on these topics in school, they will seek it from other sources (our recent young people’s survey confirmed that) which is very concerning. This curriculum sidesteps several critical issues, leaving kids with significant gaps in their education around these topics that have real world consequences for their individual lives and relationships.”
The term “sex education” has replaced Relationships and Sexuality Education in the new curriculum, signalling the ways in which these topics have been taken out of a comprehensive, holistic framework which had been captured in the 2020 Relationships and Sexuality Education Guidelines . These guidelines, which were recently removed, supported schools to implement internationally recognised best practice standards from years 0-13 in a holistic, comprehensive, inclusive and evidence-based way. The new curriculum does not provide a new set of guidelines and instead provides fractured, incomplete information on essential knowledge areas and skills.
“Some information on relationships is provided taught within the broader health curriculum but there is almost no information on sexual orientation, gender identity or intersex variation. Omitting these topics means that young people miss out on critical skills and knowledge to understand themselves and the world they live in. This puts young people’s safety at risk – both within and outside school,” Ms Edmond says.
Sexual Wellbeing is also concerned that consent education is the only mandatory component of the RSE curriculum.
“All RSE information should be mandatory – not just consent. While consent is an important component of RSE, it needs to be taught and understood alongside other topics such as health relationships, sexual health, drug and alcohol use, and digital safety.”
Other areas of concern:
  • LACKING CLARITY ON DELIVERY:
  • There is no information included on how much flexibility teachers would have in delivering this information.
  • LACKING INFORMATION ON DIVERSITY/INCLUSIVITY:
  • While the binary language has been removed it also does not provide inclusive language. There is no mention of gender identity or gender diversity.
  • Gender is only mentioned twice – once regarding gender roles and another around identity but not until Year 9. This is woefully late and insufficient as young people grapple with these issues much earlier in their development.
  • Information on sexual orientation or LGBTQIA+ is completely absent.
  • TIMING IS TOO LATE:
  • Puberty is not discussed until Year 5 despite the fact that many young people are already well into these changes. Even if a young person is yet to start puberty at this age, they should know about it before it begins.
  • The same is true for menstruation which is not taught until Year 6 and without information about the implications for sexual activity such as unintended pregnancy.
  • There is also no information on sexual abuse, coercion, or violence.
  • There is not mention of learning about body parts.
  • Information about online safety and pornography is not until Year 8; this does not correspond to what we know about when young people begin to encounter this content (average age
11/Year 5).
  • RELATIONSHIP DEVELOPMENT IS ABSENT:
  • Despite a domain for relationships there is scant information on relationships and how these might change over these years, particularly from Year 4 onward.
  • The effects of changing hormones or confusing feelings that may arise is absent.
  • There is no information on how to engage in healthy romantic relationships or identify those that are unhealthy or abusive.
  • LITTLE INFORMATION ON SEX EDUCATION:
  • Information on conception is not provided until Year 8.
  • Information on contraception is not provided until Year 10.
  • Information on condoms or how to use a condom is absent. 
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Animal Welfare – SAFE challenges Select Committee on cruel pig caging Bill

Source: SAFE For Animals

SAFE has presented its oral submission today to the Primary Production Select Committee, calling for the Animal Welfare (Regulations for Management of Pigs) Amendment Bill to be rejected in full.
The Bill would entrench the use of farrowing crates and mating stalls – confinement systems so restrictive that mother pigs cannot turn around, move freely, or care for their piglets. These systems were due to be phased out this December, following a High Court ruling that found them unlawful under the Animal Welfare Act.
SAFE Chief Executive Debra Ashton and Campaign Manager Emma Brodie told the Primary Production Select Committee that the process and substance of the Bill are deeply alarming.
“There is no credible justification for keeping mother pigs in cages,” says Ashton.
“This Bill disregards expert advice, public sentiment, and the law. It chooses industry convenience over compassion.”
SAFE says the process has lacked transparency and integrity, noting that the usual period for Select Committee consideration has been slashed from over three months to just weeks, and key documents were released only on the eve of the submission deadline.
“New Zealanders were denied a fair chance to be heard,” says Ashton.
“This is one of the most significant animal-welfare decisions in recent history, and it is being rushed through without proper scrutiny.”
Polling commissioned by SAFE last month found that three in four New Zealanders oppose the use of farrowing crates and 73% support a ban. The same polling found that 46% of voters would be more likely to support a political party that commits to banning farrowing crates.
SAFE says this demonstrates that animal welfare is not a fringe concern, but a mainstream political priority that influences voting behaviour. 
SAFE is urging the Committee to reject the Bill and reinstate a lawful transition to systems which allow pigs to move, nest, and care for their young.
“If we make cruelty lawful, we make compassion optional. That is not the Aotearoa most New Zealanders believe in.”
SAFE is Aotearoa’s leading animal rights organisation.
We're creating a future that ensures the rights of animals are respected. Our core work empowers society to make kinder choices for ourselves, animals and our planet.
Notes:
  • Farrowing crates and mating stalls are narrow, metal enclosures that prevent mother pigs from turning around, nesting, or caring for their piglets, depriving them of the ability to display normal behaviours as required under the Animal Welfare Act.
  • In 2020, the High Court ruled in favour of NZALA and SAFE, declaring that the minimum standards and regulations permitting farrowing crates and mating stalls were invalid and unlawful. The Labour-led government at the time initiated a five-year phase out, due to end in December 2025.
  • The Bill would amend the Animal Welfare Act 1999 to permit the ongoing use of farrowing crates and mating stalls for the decade, with minimal changes implemented from 2035.
  • A nationally representative poll conducted by Verian in September 2025 is attached. It found that 74% of New Zealanders oppose the use of farrowing crates, 73% support a complete ban, and 90% believe the Government has a duty to ensure welfare rules comply with the Animal Welfare Act. 
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Online Legislation – New National Bill may Fail to Meet its Own Criteria or Scope

Source: Trend Analysis Network

Initial analysis of the recently introduced member’s bill: ‘Social Media (Age-Restricted User) Bill’ appears to indicate the legislation does not meet its own criteria with regard to its purpose or scope.
Firstly, the bill as written is a piece of universal legislation not targeted, as it purports to “regulate access for individuals under the age of 16.”
To implement the terms in the clauses requires age and identity verification of all adults in New Zealand, who wish to use their social media accounts. It will require all adult users to verify they are NOT children.
Secondly, the intent of this bill to “protect children from the harms of social media” will be circumvented by the very audience it is attempting to protect.
Children are reliant on social media for communication between peers. Attempting a blanket ban of all under 16s from all social media resources will not reduce their intent or desire to message, post or share information with peers. Instead, it is likely to encourage children to rely on integrated message and chat services in games, underground or on darkweb resources. It takes a few minutes to setup access to unofficial or darkweb resources and then continue messaging and sharing with no age controls.
Thirdly, the bill places its reliance and success entirely on social media corporations, some of which have recently had data breaches.
Based on news headlines, Facebook apparently had a mass data breach in May 2025, Instagram had potentially hackers obtain credentials and share them on the web also in May 2025, and apparently WhatsApp had a data leak possibly as recently as February 2025.
To introduce legislation that requires third parties to obtain personal data from New Zealanders, while not offering any data protection or data privacy measures, appears to be a substantial omission.
This legislation has been written with a limited understanding of scope or technological context, and could result in the opposite of its intent. Perhaps a more prudent measure is to delay such legislation, and await the outcomes from similar legislation in Australia.
Trend Analysis Network is a research think tank based in New Zealand created to identify and publish analytical results of future trends in politics, society, and economics.
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Renewable Energy – NewPower energises Taiohi Solar Farm, delivering new resilience for the Waikato region

Source: WEL Networks

NewPower Energy is celebrating a major milestone with electricity being generated at the 33 MW Taiohi Solar Farm in Rangiriri, just north of Hamilton. Comprising more than 47,000 solar panels, Taiohi marks another significant step in the WEL Networks Group’s transition toward a more sustainable, resilient energy future.
Once fully commissioned, Taiohi will provide renewable generation capacity to strengthen supply resilience across the Waikato and beyond. It complements NewPower’s 35 MWh Rotohiko Battery Energy Storage System (BESS) at Huntly, creating a more flexible and responsive energy network for Aotearoa.
The name Taiohi, meaning youthful, was gifted by mana whenua, recognising the shared commitment to a future built on clean energy and partnership. NewPower has developed a close relationship with Maurea Marae and will continue to work alongside local communities to advance renewable energy solutions that reflect both environmental and cultural values.
Construction of Taiohi was led by Infratec New Zealand Limited, and supported by Feisst Electrical, Trilect Solar and PGS Profab Limited. Over the past four years, Infratec has delivered, or is currently building, nine solar farms and one BESS nationwide, adding more than 202 MW of generation capacity to New Zealand’s renewable landscape.
Among these is NewPower’s 12 MW Rangimārie Solar Farm, located in North Waikato and currently under construction, with first generation expected in Q2 2026.
Quote – “Taiohi represents the next stage in WEL’s commitment to accelerating New Zealand’s renewable-energy generation. Through NewPower and Infratec, we’re investing in local capability, creating partnerships with iwi, and building infrastructure that strengthens energy security for our communities.” David Barnett, Acting CEO, NewPower & Infratec.
Taiohi Solar Farm – Rangiriri, Waikato – 33 MWdc – Operational (2025)
Rangimārie Solar Farm – Kopuku, North Waikato – 12 MWdc – Under construction – Q2 2026 generation
Developer / Owner: NewPower Energy Ltd
Principal Contractor: Infratec New Zealand Ltd
Parent Company: WEL Networks Ltd
About NewPower Energy
NewPower Energy, a subsidiary of WEL Networks, develops, owns, and operates renewable-energy generation assets that strengthen New Zealand’s local-energy resilience. Its portfolio includes solar, battery, and emerging-technology projects across the North Island.
About Infratec New Zealand Ltd
Infratec is a renewable-energy specialist delivering design, engineering, and construction services across solar, wind, and battery projects. A wholly owned subsidiary of WEL Networks, Infratec builds infrastructure that accelerates the transition to a low-carbon future.
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Education and Politics – Latest Curriculum like a foreign document say principals

Source: NZ Principals Federation

Principals across the country are horrified by the latest version of the national curriculum, for years 0 – 10, which has been drip-fed to them over the past two days.
“This third version of curriculum in two years, is a philosophical shift from the original design presented in 2023,” said Leanne Otene, President of the New Zealand Principals’ Federation (NZPF)
“Inclusion and giving effect to Te Tiriti o Waitangi have long been foundational principles in our uniquely New Zealand curriculum. Now they are not even core expectations, making this feel like a foreign document,” said Otene.
“The 2023 draft was a curriculum grounded in partnership, belonging, and the mana of every learner. This latest version is grounded in standardisation, prescription and measurement. It is a reframing of the purpose of the curriculum and the purpose of education,” she said.
Otene and the NZPF membership are also critical of the process for curriculum change saying it lacks credibility and took no notice of representatives’ feedback and prevented them from seeking feedback from  wider principal groups.
“Despite sector representatives providing detailed feedback on the English and Mathematics and Statistics curriculum, there is no evidence that substantive concerns were addressed in the final documents,” she said, “and non-disclosure agreements effectively shut the door on constructive dialogue with the wider community of principals.”
“We have paused all discussions with the Ministry of Education regarding the curriculum and will be meeting with all of our Regional and Local Principals’ Associations on Friday to further discuss the latest curriculum and provide feedback by the required date of April 2026,” she said.
“When a curriculum loses its focus on inclusion, wellbeing, and culturally sustaining practice, it's our students who suffer,” said Otene.
“We owe it to our students, our communities, and our profession to get this right. That requires genuine consultation, adequate time for implementation, and a curriculum that is truly fit for purpose for Aotearoa New Zealand.”
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University Research – Active commutes lower cancer risk – UoA

Source: University of Auckland (UoA)

Cycling or walking to work lowers your risk of several cancers, new research finds.

Cycling or walking to work will reduce your risk of several types of cancer, according to new research out of Waipapa Taumata Rau, University of Auckland.

While earlier studies had established exercise reduced the risk of a number of cancers, they hadn’t specifically looked at how people travel to work, with active transport a sure way to meet health guidelines for exercise.

“It is one thing to say that people should be encouraged to be more physically active but simply telling them to ‘exercise more’ often doesn’t stick,” says Professor Alistair Woodward, an author of both studies and a public health researcher at the University of Auckland.

“Life is busy, and advice given in isolation rarely leads to lasting change. Using regular commuting as the vehicle for getting physical activity into people’s lives, is far more likely to lead to sustained change.”

In the first of two recent studies, lead author Dr Win Thu and colleagues examined 27 recent studies to establish that walking and/or cycling to work reduces the risk of breast cancer by 12 percent, endometrial cancer by 30 percent and colorectal (bowel or colon) cancer by 11 percent. See Environmental Health.

The latest study, using more than 250,000 health and life-event records from the UK Biobank and correlated with similar anonymised records for the population of Aotearoa, New Zealand, found dramatic reductions for a number of other cancers with active transport, walking or cycling, to work.

Published in the International Journal of Epidemiology, the study found cycling to work was linked to a lower risk of colon cancer (28 percent), kidney cancer (40 percent) and stomach cancer (73 percent).

Walking to work was also associated with reduced risks of kidney cancer (33 percent) and liver cancer (45 percent).

There were signs cycling to work may help prevent other cancers too, but the evidence wasn’t strong enough to be conclusive, probably because fewer than 8 percent of participants were regular cyclists.

Dr Sandar Tin Tin, a public health researcher at the University of Auckland, says, “In light of these findings, active commuting should be promoted as an effective lifestyle intervention to prevent cancer and support better health and a cleaner environment.”

Woodward, who leads the University of Auckland’s health and transport research team, says: “Most research on active commuting has focused on heart disease, not cancer. Dr Win Thu’s work helps fill that gap by looking at common cancers that may be less likely in people who are more active.”

Earlier research out of the same team found that cyclists are the happiest commuters, and that cycling is safer than many people think.

“This new study is part of a bigger picture – our transport system is harming health, but it doesn’t have to be this way,” Woodward says.

“According to the NZ Household Travel Survey, two thirds of car trips are five kilometres or less. There’s no good reason we couldn’t match cities overseas where walking and cycling are ten times more common.”

Woodward says research supports the idea that our physical environment shapes our activity, including how we get to work, more than individual advice.

This research shows environments that encourage people to walk or cycle to work will reduce their risk of many types of cancer.

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University Research – Pharmacist-facing diabetes project succeeds – UoA

Source: University of auckland (UoA)

Diabetes patients in South Auckland had remarkable success in a trial of using community pharmacists as coaches.

A pilot programme in South Auckland has shown that community pharmacists, working closely with general practice nurses, can significantly reduce blood sugar levels for people with diabetes – and keep them down.
 
Type 2 diabetes is a major health challenge in Aotearoa New Zealand, leading to preventable complications such as dialysis, amputations, vision loss, and heart disease.
 
The programme, run by Counties Manukau Health and funded by the Ministry of Health, enrolled a total of around 60 people, with a new paper focusing on 26 participants who enrolled early and had long-term follow-up data. See Journal of Primary Healthcare.
 
Participating pharmacist, Carole Baxter, at Unichem Tuakau Pharmacy recalls one patient whom she and the nurse referred to as ‘the poster boy’.
 
“We told him what he would need to do – lifestyle changes, moving more, improving his eating and taking his medications. Whatever we said, he did. He ended up not needing to take any medications.”
 
Baxter believes the pilot would have been even more successful if it hadn’t coincided with the start of the Covid-19 pandemic.
 
“It shows that diabetes patients really need a coach,” Baxter says. “It was often simple things like finding people weren’t testing regularly because they had left their meter at a tāngi or moved house and couldn’t find it. Issues that were easily resolved.”
 
Baxter wrote long-term-condition plans for the patients and is still following up with activities like checking they have an appointment to get their next script. “A few days later, the script turns up in the pharmacy,” she says.
 
At the outset of the trial, patients’ average HbA1c was 97.6 mmol/mol.
 
HbA1c, a long-term measure of blood sugar control, should ideally be under 53 mmol/mol – a target many people do not meet.
 
During the pilot, patients had an average reduction of 25.2 mmol/mol, or 20.7 mmol/mol for Māori and Pacific participants.
 
When the patients were followed up after seven months, the participants had sustained their improvements
 
Most, participants (85 percent) improved their HBA1C by at least 5 mmol/mol.
 
“Rates of prescribing of newer diabetes medicines such as empagliflozin and dulaglutide, were higher than comparable studies in people with type 2 diabetes in New Zealand eligible for these treatments,” says lead author Dr Natalie Gauld, an honorary senior lecturer in the School of Pharmacy at Waipapa Taumata Rau, University of Auckland.
 
“We’d love to see a larger trial with more pharmacies and a comparison group,” says Gauld.
 
“Having a pharmacist mentor would help build confidence and support pharmacists in this new way of working. It’s also vital to involve Māori and Pacific communities in designing the next phase.”
 
Dr Sue Tutty, GP liaison at Counties Manukau and co-author, says the programme highlights the value of collaboration.
 
“It showed how relatively small interventions, utilising a team-based model of care, can have a significant impact on outcomes.”
 
Researchers recommend scaling up the approach with more emphasis on team-based care and better integration between pharmacies and general practices, mentoring for pharmacists, and additional support for patients who feel overwhelmed or disconnected from the health system.
 
“This project is scalable now with the resources we currently have in the community, and with motivation and project support,” Tutty says.

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Economy: Reserve Bank – Transmission currents and the flow of monetary policy to domestic financial conditions

Source: Reserve Bank of New Zealand

29 October 2025 – In a speech presented today at the CBA Global Markets conference, RBNZ Director of Financial Markets, Adam Richardson, outlined the transmission of recent New Zealand Official Cash Rate (OCR) cuts to domestic financial conditions is playing out largely as expected.

Mr Richardson conveyed that financial conditions in New Zealand have loosened, with interest rates falling and credit conditions becoming more favourable.

“As with any cycle, there are some unique features that we have had to take account of when assessing the stance of monetary policy,” Mr Richardson said.

In the speech, Mr Richardson highlighted that some of these features are the result of domestic developments, such as a temporary shift in mortgage holder preference for shorter terms in expectation of further rate cuts. Others are the result of global factors, such as higher global term premia and their contribution to a significant steepening in government sovereign bond yield curves.

As part of its monetary policy deliberations, the MPC accounts for the various domestic and global factors that push financial conditions around, allowing it to effectively steer domestic financial conditions to be consistent with the inflation target.

Mr Richardson also stressed that, “the cash flow channel is an important and very visible part of monetary policy transmission. However, other channels of transmission potentially play a more important role.”
 
More information:

2025 Commonwealth Bank Global Markets Conference – Reserve Bank of New Zealand – Te Pūtea Matua: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=50ee4e5a41&e=f3c68946f8