Key insights
- RBNZ Governor indicates stable core inflation within the 1-3% target band. The bank is prepared to act decisively if short-term inflation becomes persistent. This cautious stance suggests a potential for tighter monetary policy, which could have a slight negative impact on global risk sentiment and indirectly influence US equities.
WELLINGTON, April 29 (Reuters) - New Zealand’s top central banker said on Wednesday measures of core inflation in the first quarter had remained stable within its target band of 1%-3%, and that it remained focused on balancing inflation control while supporting economic recovery.
"We remain ready to act decisively and in a timely manner if there are signs that short-term inflation is feeding into more persistent pressures, to ensure inflation settles sustainably at 2% over the medium term," Reserve Bank of New Zealand Governor Anna Breman said in a speech.