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

Trade data shows imports down, exports up in November
Economy

Trade data shows imports down, exports up in November

The latest trade data follow Thursday's dire GDP result.

Staff reporters 20 Dec 2024
GDP plunge may spur speculation about a 75bps cut
Economy

GDP plunge may spur speculation about a 75bps cut

The past two quarters mark the weakest six months since June 1991. 

Rebecca Howard 19 Dec 2024
Massive GDP fall: NZ in deep recession
Economy

Massive GDP fall: NZ in deep recession

New Zealand’s gross domestic product fell 1.0% in the September 2024 quarter.The massive fall came after a revised 1.1% decrease in the June 2024 quarter, according to figures released by Stats NZ on Thursday.“The structure of the New Zealand economy can change quickly, which is...

Staff reporters 19 Dec 2024