The Reserve Bank's inflation target conundrum

The Reserve Bank's inflation target conundrum
As the costs of getting rid of inflation mount, is the RBNZ's 2% target still appropriate? (Image: NZME)
Cameron Bagrie
Is 2%, or a 1-3% target range for inflation, still the appropriate objective for the Reserve Bank of New Zealand? That question could well be asked more and more as the costs of getting rid of inflation mount. As the Reserve Bank of NZ (RBNZ) governor has noted, “the last few yards may be very difficult”.Inflation in NZ has come in hotter than expected, with non-tradable inflation still an eye-watering 5.8%. But it is also clear we are now entering the breaking of bones stage of the disinflation process.Getting inflation down i...

More Economy

RBNZ 25bps rate cut wasn't unanimous
Economy

RBNZ 25bps rate cut wasn't unanimous

The vote was 5 to 1 to cut by 25 basis points. 

Rebecca Howard 28 May 2025
RBNZ cuts, signals more to come
Economy

RBNZ cuts, signals more to come

Risks around the economic outlook are heightened. 

Rebecca Howard 28 May 2025
Not everyone thinks the RBNZ should cut this week
Economy

Not everyone thinks the RBNZ should cut this week

Three out of five members of NZIER's Shadow Board recommend a hold. 

Rebecca Howard 26 May 2025
Downturn dims luxury's lustre
Retail

Downturn dims luxury's lustre

Louis Vuitton NZ's revenue dropped 10.7% to $82.2 million year on year.

Gregor Thompson 26 May 2025