The jobless rate rise to 5.3% in the September quarter is the highest since late 2016.
Insolvencies have been increasing in the face of tougher economic times, Reserve Bank’s financial stability report shows.
Large geopolitical shocks can have big effects on banks’ profitability, capital, funding, and liquidity.
The outgoing governor says the RBNZ’s role is crystal clear, as it enters a new era with fewer staff and a new boss.
Some pockets of positivity recorded, but overall outlook subdued, according to latest BDO survey.
Inflation is forecast to ease after peaking in September quarter.
Purchases of Government bonds crystallised big losses on the Crown balance sheet, but were the equivalent of cutting the OCR by 90 basis points.
However, it insists there is no evidence that a 12-week gap over Christmas has caused problems.
But RBNZ says debt-to-income restrictions will remain the same.
Nicola Willis says it brings New Zealand into line with what other countries do.