RBNZ rate cut might get inflation back up to target sooner, McDermott says

Fri, 15 Mar 2013

By Paul McBeth March 15 (BusinessDesk) - The Reserve Bank might be able to accelerate inflation to its target 2 percent sooner than expected if it cuts rates, but that would come at the expense of plumping an already bubbling property market, assistant governor John McDermott says. The 'Think Big' projects of the 1970s are evidence that sustainable long-term growth can't be achieved by "tolerating a bit more inflation," and the most useful thing the central bank can do to support the economy "is to keep aggregate inflation predictably low, s...

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