Expected damage to New Zealand's economy from severe weather over the past three weeks has prompted financial markets to downgrade the outlook for interest rate rises.
When Cyclone Gabrielle hit, picking had just begun on pip-fruit farms, whose production is worth about NZ$1 billion a year. Now the industry has lost not only 2023 product but many orchards are still inaccessible.
"This will be a significant event financially for the government and for individuals, households, businesses, banks and insurers," he said.A surge in prices looks likely from the disruption. Economists expect inflation, already running at a near three-decade high of 7.2%, to rise as the country replaces homes and contents and repairs infrastructure. Loss of crops will push up food prices.
Still, Kiwibank chief economist Jarrod Kerr said the central bank should pause hikes until the effect of the cyclone can be understood.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cyclone death toll in New Zealand rises to 11 as recovery continuesThe death toll from Cyclone Gabrielle in New Zealand climbed to 11 on Sunday as thousands of people remained missing a week after the storm struck the country's North Island.
Read more »
England thrash New Zealand with 'Bazball' and Broad-sideEngland's 'Bazball' revolution continued apace on Sunday when the tourists wrapped up a thumping 267-run victory over New Zealand in the opening session of the fourth day of the first test at Bay Oval on Sunday.
Read more »
New Zealand looking forward to daylight cricket in second testSkipper Tim Southee is confident New Zealand can brush of their heavy loss to England in the pink ball test at Bay Oval and bounce back in the second match in daylight hours in Wellington next week.
Read more »
New Zealand's cyclone death toll at 11, thousands still missingThe death toll from Cyclone Gabrielle in New Zealand climbed to 11 on Sunday as thousands of people remained missing a week after the storm struck the country's North Island.
Read more »
New Zealand police reach more people previously not contactable after Cyclone GabrielleAs New Zealand starts its long road to recovery following the devastation from Cyclone Gabrielle, the number of people still not reachable has fallen as communications in hard hit areas improve, the country's police commissioner said on Monday.
Read more »