Government policy and the path to lower inflation

Government policy and the path to lower inflation
RBNZ governor Adrian Orr. (Image: File)
Cameron Bagrie
The Reserve Bank of New Zealand’s official cash rate review opened the door to earlier interest rate reductions. It also delivered a nice reminder of the importance of structural variables and regulatory settings that we need to watch. The latter are key indirect factors that influence pricing and the supply-side capacity of the economy, though they are slow-moving.The demand side of the equation for the Reserve Bank of NZ (RBNZ) is clear, but the supply side is opaque and sometimes ponderous.  “A range of business and con...

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