Reserve Bank of New Zealand monetary-policy committee member Adam Richardson spoke in an interview with The Wall Street Journal.
The Journal link is here (gated).
In summary from the piece:
Stronger inflation pressures recently were a surprise for New Zealand's central bank
- "The inflation shock that is going on around the world continues to leak into domestic prices a bit more than we assumed,"
- "What we tend to find is that domestic inflation is a lot more persistent than the imported inflation."
A 25-basis-point move wasn't give much consideration
- "It's always in there, but it wasn't a huge or major part of the discussion or landscape,"
Also:
long-term inflation expectations have remained "relatively well anchored"
- "... what we'll be focused on is bringing core [inflation] measures down. You might see a bit of volatility in headline [inflation], but core will be the key focus for us."
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Last week the Reserve Bank of New Zealand raised its cash rate by 50 basis points for a fourth consecutive meeting, bringing it to 3.0%.
- the RBNZ, which says inflation won't return to its 1.0%-3.0% target range until mid-2024
Earlier:
NZD update:
