Central Banks
RBNZ Is ‘Hopeful’ Inflation Has Peaked, Chief Economist Says
- Paul Conway speaks to financial market participants in Sydney
- Says era of ‘helpful tradables inflation’ may be coming to end
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New Zealand’s central bank is “hopeful” that inflation has peaked, even though it was higher than anyone expected in the third quarter, chief economist Paul Conway said.
The annual rate of 7.2% was “obviously too high” but “we expect to see inflationary pressures easing going forward” and “are hopeful that it has peaked,” Conway told a Commonwealth Bank Global Markets Conference in Sydney on Tuesday, according to an audio recording supplied by the Reserve Bank. The “very rapid tightening in monetary policy” is starting to have an effect and “there are early signs that the economy is starting to cool,” he said.