kathleen: reserve bank of new zealand governor adrian orr said pushing hard against inflation could takearound the world close to zero growth. he spoke at central bank and set the central bank is likely to deliver more rate hikes. adrian: we know we have to slow the economy. we knew he to be 3% to even begin the slowing journey. we are in a much more comfortable position. we think there will be at least a couple of other rate hikes but then, we hope to get in eight -- getting a position where we can be data driven and be in a normal position of watching, waiting and worrying. kathleen: what are you worrying about and waiting for the most? >> signals of inflation expectations and actual inflation declining. we do see that. we are on top of it. we don't need to be chasing inflation all the way down, so we are watching for signs where we could be confident in the economy and confident that the data is credible and feeding into inflation expectations. kathleen: you watch all measures of the economy and they consumers one of the big drivers of any economy. with our retail sales for new zealan

on the back of kathleen's excellent interview with adrian orr, the kiwi as well, the worst-performing g10 currency after adrian orr told bloomberg that perhaps the rbnz is getting close to the end of that aggressive tightening cycle. manus. manus: your homeland is not anywhere near that. juliette saly in singapore there. coming up on the show, we are watching and waiting on wyoming. i love alliteration. the latest from jackson hole ahead of the highly anticipated each from jerome powell this afternoon. this is bloomberg. ♪ >> i know what they should do. they should not blink. but it has been very difficult to call this fed. it has failed at analysis, at forecasts, at communication, so it's very difficult to say what this fed is going to do. easy to say what it should do but it's much harder to say what it is going to do and that is why you get this disconnect you have been talking about between the markets and the fed. >> that is the causative queen college, cambridge university, mohamed el-erian. my guest is the senior portfolio manager, head of global fixed income. it is a difficult

tell us what the polls is underground, especially when you talk to adrian orr.een: adrian orr is definitely ready to get to the top and stop with interest rate hikes. yes, the door is still open. and another interesting thing, he is ready not to have a recession. retail sales this week were weak. broadly speaking, he did not signal openness. i think he thinks it will be ready to stop. next year. let's listen. >> we know we have to slow the economy, when you that it was 3% less to even begin the slowing journey. so now, we are in a much more comfortable position. we think there will be another couple of rate hikes, but then, we hope to get in a position where we can be data-driven and get back to a normal position now. kathleen: what are you watching and worrying about the most? >> we are looking for significant signals of inflation expectations, and actual inflation declining. we have seen the beginning of that. so i do feel confident we are on top of it. we all have to be cautious. we don't need to be chasing inflation all the way down. so we are watching for s

david: everyone is hiking including adrian orr. indonesia are the holdout.he broader story is the dollar story. the other side of the dollar equation not compelling enough. 50 or 75. in case you are hiding, we are not talking about a cut. dollar index, 20 year highs. is now a good time to be adding risk to one's portfolio against that backdrop? >> i think currently we think a neutral risk exposure because market volatility will say high ahead of the fomc, we would like to get hawkish guidance from the fed during the jackson hole symposium. it is a risk on to the earlier premature market expectation. it is far too early to expect the fed to start easing monetary policy with core inflation likely to say hi and sticky. the investor needs to stay defensive so we focus on adding protection to our portfolio and we expect the u.s. dollar will stay strong. we stick with a neutral allocation to global equities because we don't expect a global recession scenario. we will get a recession in selected regions such as the euro zone and the u.k.. our portfolio strategy pos

adrian orr will be one of the central bankers at jackson hole, and i will be sitting and interviewinge end of the week. at last week's meeting, it was very clear from him that he would not even, to like 50 points or 25 points. 4% was what he was looking at that. for him to say they are looking at 4.25%, seems to me like the deputy governor is taking it a step forward. will jay powell opened the door to something as aggressive as 4%? he has talked about a soft landing. we know that it could cause a recession, but he still seems to be holding the soft landing in his back pocket, which might be another reason why some people have found him to be rather dovish. one final thing, you know the reserve bank of new zealand is under investigation for, how can you let inflation get so high? there is a certain element of that for all central bankers. we will see if jay powell addresses that question as well. haidi: it will be a big week for global central bankers. thank goodness we have kathleen hays across all of that. [laughter] and we will be live and all over jackson hole later this week for