On Monday, Reserve Bank of New Zealand Deputy Governor (Financial Stability) Hawkesby provided testimony before the Finance and Expenditure Committee, offering key insights:

• He emphasized the resilience of the New Zealand financial system, stating that it remains robust.
• Hawkesby noted a stabilization in house prices over the past six months.
• Regarding interest rates, he expressed confidence in the system’s ability to withstand higher rates.
• While acknowledging that the majority of households have effectively managed their debt and mortgage payments, he also highlighted concerns about some individuals experiencing difficulties and falling behind.