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,”
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.”