RBNZ’s Richardson says 25bp rate hike was only briefly considered before +50bp was decided

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.”

Dodaj komentarz

Twój adres e-mail nie zostanie opublikowany.