Infometrics Chief Executive and Principal Economist Brad Olsen and Chief Forecaster Gareth Kiernan discuss the Government’s 2023 Budget, and the latest Monetary Policy Statement from the Reserve Bank. Budget 2023 seeks to strike a careful balance between investing in the future, supporting New Zealanders through the cost-of-living crisis, and recovering from Cyclone Gabrielle – while also limiting large spending increases that could fuel inflation further. The Reserve Bank’s latest assessment saw a 25 basis point increase to the Official Cash Rate on Wednesday 24 May, but a forthright view that the Bank expects to now wait, watch, and assess the economic pathway as inflation begins to moderate.