RBNZ Assistant Governor McDermott speaking in Wellington:
- Monetary policy focus is low inflation
- Says higher growth in potential output is desirable
- Important that inflation expectations remain contained
- Inflation pressures expected to increase as the economy grow faster than potential
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It has long been recognised that the best contribution that monetary policy can make to strong and sustainable long-run growth is low and stable inflation. This proposition is at the heart of New Zealand’s flexible inflation-targeting framework to maintain price stability while not causing excess volatility to output, interest rates or the exchange rate.
He is also in favour of motherhood and apple pie