Business · Economy · 8 hrs ago

New Zealand Inflation Expectations Are Above Target, RBNZ Economist Says

New Zealand Inflation Expectations Are Above Target, RBNZ Economist Says

New Zealand’s inflation expectations are above target, Reserve Bank Chief Economist Paul Conway says.

Inflation expectations reflect what people and businesses think will happen to prices.

The Reserve Bank will weigh those expectations as it considers interest rates.

The bank’s next interest rate decision is due in December.

The expectations will be key to that decision, but no rate outcome is given.

Interest rates are one of the policy tools the bank uses to manage inflation.

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