RBNZ Board Member Gai says supply shocks such as the Hormuz situation have raised the neutral rate

The RBNZ's board member comment on supply shocks raising the neutral rate suggests a hawkish shift in the bank's outlook. This could imply tighter monetary policy ahead, as they may need to adjust rates to manage inflationary pressures stemming from such shocks. It’s worth monitoring how this influences NZD and fixed income markets, as expectations may shift accordingly.