RBNZ bulletin tackles inflation, macro-prudential policy and reserve bank capital
The Reserve Bank of New Zealand (RBNZ) today released the latest issue of its bulletin, featuring three articles. The first looks at why inflation in New Zealand has been surprisingly low for the past 18 months, even though GDP growth has been much as expected, and concludes that the unexpected strength in the exchange rate, reinforcing strong competitive pressures, has played a key role. Encouraging declines in inflation expectations and low wage inflation have also contributed.
The bulletin's
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