- Analytics
- News and Tools
- Market News
- RBNZ’s Orr: New Zealand farms face challenges as interest rates rise
RBNZ’s Orr: New Zealand farms face challenges as interest rates rise
“The New Zealand farming sector faces challenges as interest rates and other costs rise and returns are forecast much lower, with dairy farms the hardest hit,” Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr said on Thursday per Reuters.
RBNZ Governor Orr appeared for a testimony to a parliamentary committee.
The news also spots Senior RBNZ officials noting that debt levels in the sector are down significantly from five years ago when the central bank was highlighting debt as a major vulnerability for the dairy sector.
More comments from Orr
What we observe in the dairy sector in particular, is the structure of the industry - the high leverage nature of the industry - leads to a very high vulnerability to shifts and interest rates up and down.
Cost pressures remain so there's definitely challenges in the sector.
On the same line RBNZ Deputy Governor Christian Hawkesby told the same parliamentary committee, per Reuters, that the central bank was not concerned about New Zealand's growing current account deficit.
"New Zealand government debt is still relatively low compared to other countries, and that puts us in a strong position," Hawkesby said.
Also read: NZD/USD Price Analysis: Pullback moves prod 0.6200 ahead of China Caixin PMI
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
