By Lucy Craymer and Renju Jose
AUCKLAND (Reuters) -Early indicators suggest the economy had been expanding during the second half of this year and demand had stabilised, Reserve Bank of New Zealand Governor Christian Hawkesby told a parliamentary committee on Thursday.
* The RBNZ cut its benchmark official cash rate by 25 basispoints to 2.25% on Wednesday, the lowest since mid-2022, butpolicymakers signalled an end to the easing cycle as the economyshowed early signs of picking up.
* “We’re not waiting for a recovery; a recovery is happeningright at the moment. … All our indicators are telling us nowthat the economy expanded through Q3,” Hawkesby said. * Hawkesby said labour market indicators will be the lastones to turn but there are a number of indicators includingvacancies, hours worked, hours paid that are starting to turnaround.
* “Looking to the influence of monetary policy on the labourmarket, is going to be positive rather than negative,” he said. * Hawkesby said 2026 will have low and falling inflation,and an expanding economy.
“It’s a good environment to bestepping into,” he said.
(Reporting by Lucy Craymer in Auckland and Renju Jose in Sydney; Editing by Nia Williams and Richard Chang)
