RBNZ Says Weak Global Inflation Assumption Increases Upside Risk
- Acting Governor Grant Spencer gives speech in Auckland
- Kiwi dollar gains on potential for cash rate to rise sooner
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The Reserve Bank of New Zealand’s new assumption that global inflation will stay lower for longer means it is more exposed to the risk of prices picking up, Acting Governor Grant Spencer said.
“More recently we have been assuming greater persistence in low global inflation and this is contributing to our current flat track for future OCR levels,” Spencer said in a speech Tuesday in Auckland. “This now puts some risk on the upside for inflation and interest rates.”