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The Reserve Bank struck a hawkish tone on Wednesday with its final monetary statement of the year.
As expected it kept the cash rate unchanged at 5.5 percent but explicitly added the threat of a rate rise because of concerns that the surge in migration will stoke inflation pressures that are already too high, through rents, house prices, and extra spending in the economy.
RBNZ Governor Adrian Orr agrees it was also an intentional shot across the bows of banks and finance firms who've been betting on early rate cuts next year, but says the inflation risk and potential rate rises are also real.
RBNZ Governor Adrian Orr talking to business editor Gyles Beckford.