The great inflation moderation

Is the Australian model of an inflation target of 2-3% preferable to New Zealand’s 1-3%? (Image: Getty)

Tue, 09 Sep 2025

Should we shift the inflation goal posts? Kelly Eckhold, Westpac’s chief economist, has raised the issue, suggesting that the Australian model of 2-3% is preferable to New Zealand’s 1-3%. A new chair of the Reserve Bank of NZ (RBNZ) is pending, as is a new governor, making it timely for the issue to be aired.You can see the near-term political attraction for a government that needs to get the economy going. A relaxation of the target could allow the RBNZ to push a bit more on the accelerator, cutting interest rates, in the...

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