RBNZ says global financial stress will test New Zealand’s financial resilience

WELLINGTON (Reuters) – The Reserve Bank of New Zealand said on Wednesday the country’s financial system is as a whole resilient but global financial stress will test this.

“The rising global interest rates necessary to curb inflation will test New Zealand’s financial resilience,” said Governor Adrian Orr in the bank’s financial stability review, which is released twice a year.

The RBNZ added there are increasing downside risks to the global economic outlook and despite New Zealand’s high levels of employment and a sound government fiscal position, the country is not immune to these risks.

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