Hawkesby, deputy governor of the Reserve Bank of New Zealand:
Although near-term inflation risks are on the rise, medium-term inflation is returning to its target.
- No single data point will cause rates to rise, monitoring domestic inflationary pressures and expectations
- Reducing interest rates is not part of the short-term discussions
- Lots of uncertainty about inflation of tradable goods in the future
Hawkesby patiently comments on future interest rate developments for the RBNZ. Budget cuts are coming, but not soon.
This article was written by Eamonn Sheridan at www.forexlive.com.
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