Christchurch, New Zealand – Reserve Bank of New Zealand Governor Anna Breman cautioned businesses against increasing prices during a speech to the Business Canterbury event in Christchurch on Friday, February 20, 2026. Breman warned that attempts to raise prices could prove difficult given current economic conditions.
According to Breman, inflation expectations are rising among both economic forecasters and businesses, a trend she views with concern. “In our view, given that wage growth is still subdued, given that the labour market is starting to increase – but households will wish to see more of that – we think it will be very difficult for firms to pass on big price increases,” she stated. The governor’s remarks signal the Reserve Bank’s intention to closely monitor pricing strategies as it navigates the current economic landscape.
Breman highlighted the ongoing financial strain on New Zealand households, citing cost-of-living pressures and a comparatively weak job market. She suggested that further price increases would exacerbate these difficulties and negatively impact consumer spending. The governor also acknowledged the potential for external factors, including geopolitical instability and rapid advancements in artificial intelligence, to introduce further volatility into the inflation outlook.
Even as acknowledging these risks, Breman assured attendees that the Reserve Bank’s monetary policy committee would remain responsive without overreacting to short-term fluctuations. This approach reflects a commitment to maintaining price stability while avoiding unnecessary disruption to the economy. Breman delivered a similar message at a lunch hosted by Business Canterbury, where she shared her vision for the Reserve Bank, according to Newssummedup.com.
The governor’s speech comes after a February 18th assessment by ASB economist Wesley Tanuvasa, who described Breman’s tenure as a “debut against the New Zealand inflation dragon.” The Reserve Bank’s core mandate, as outlined by Breman in a speech on February 22, 2026, remains focused on maintaining low and stable inflation.
