The discussion took place during a panel hosted by Waikato Young Professionals in partnership with Love the Centre, bringing together voices from across the central city business community.
Titled "Bridging the Gap: Understanding the national economy through a local lens," the panel explored the current economic environment and connected global developments to what is happening on the ground in Waikato, and what that means for businesses and individuals.
On the panel, Dr Breman discussed global economic trends, inflation and cost pressures, and how households and businesses are responding in a changing environment. The conversation also highlighted regional insights, including business conditions in Hamilton, emerging opportunities, and the growth in shaping the Waikato economy.
Dr Breman said the current global environment continues to present economic headwinds, but the New Zealand economy can weather these challenges.
"The Middle East conflict has disrupted global supply chains, pushing up prices for oil, fertilisers, and other goods facing shortages. As a small open economy, New Zealand cannot avoid being buffeted by these global forces. The impact will be felt differently across sectors, regions, and households."
"While these conditions are difficult, monetary policy can and should ensure that a temporary increase in inflation does not turn into enduring inflationary pressures. The best contribution monetary policy can make is to remain focused on ensuring aggregate inflation returns to 2 percent over the medium term."
Dr Breman noted that recent inflation data reflects these global pressures.
"Annual CPI inflation was 3.1 percent in the March 2026 quarter, above our 1 to 3 percent target range. This was slightly higher than expected at the time of the April monetary policy decision, and somewhat higher than anticipated prior to the Middle East conflict. Much of the increase was driven by fuel prices. Measures of core inflation, which look through this volatility, have remained stable within the target band."
She added that the Reserve Bank remains focused on balancing inflation control with supporting economic recovery.
"The Monetary Policy Committee's (MPC) decision on 8 April to hold the OCR at 2.25 percent balanced the potential benefits of responding pre-emptively to the risk of higher medium-term inflation against the cost of unnecessarily stifling the economic recovery.
"We remain ready to act decisively and in a timely manner if there are signs that short-term inflation is feeding into more persistent pressures, to ensure inflation settles sustainably at 2 percent over the medium term."
"The MPC continues to keep a close watch on developments in the Middle East and incoming data, and will continue to assess what this means for New Zealand's inflation outlook."
The Waikato engagement forms part of the Reserve Bank of New Zealand's regional engagement programme, which sees the Governor and senior leaders, including External MPC member Hayley Gourley who joined Dr Breman on this Hamilton engagement, connect directly with communities across the country.
The programme aims to build a better understanding of how the Reserve Bank decisions are affecting people and businesses in different regions, while also providing an opportunity for the Reserve Bank to hear firsthand about local experiences, challenges, and perspectives.
More information
Governor engagements for April 2026
