The great inflation moderation

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

More Economy

Weak economy sharpens debate on how deep the rate cut will be
Economy

Weak economy sharpens debate on how deep the rate cut will be

The GDP contraction opened up the door for a 50bps cut. 

RBNZ might intervene over basic bank accounts
Finance

RBNZ might intervene over basic bank accounts

Intervention is possible if the basic bank account introduction is unsatisfactory.

Andy Macdonald 29 Sep 2025
NZ dollar hits 3-year low against Aussie as rate gap widens
Economy

NZ dollar hits 3-year low against Aussie as rate gap widens

NZ-Australian 2-year swap differential at 12-year low.

Rebecca Howard 26 Sep 2025