RBNZ to said in a conversation with Radio New Zealand that the central bank RBNZ’s very confident on returning inflation to target band of 1%-3% by the second half of 2024, with a goal to hit near 2% midpoint in 2025.
Highlighting the broader context, Orr pointed out that key risks to this positive outlook are mostly global. Domestic economy aligns with RBNZ’s expectations. Orr noted the current “subdued spending” and “declined” inflation levels as outcomes of the existing monetary policy settings and trade conditions.
Later in the day, Orr told a parliamentary committee the importance of “retaining a restrictive stance with the official cash rate,” as a pivotal factor for ensuring the forecasted return to target inflation levels.
