Central Banks
Orr Says RBNZ Still Needs to Anchor Inflation Expectations
- ‘We’ve got more work to do,’ Orr tells Waikato Economics Forum
- Highlights desire to get core inflation back into 1-3% target
Adrian Orr
Photographer: Mark Graham/BloombergThis article is for subscribers only.
New Zealand central bank governor Adrian Orr said policymakers still need to ensure that inflation expectations are contained, suggesting they won’t be signaling a pivot to interest-rate cuts anytime soon.
While all measures of price pressures have declined, headline inflation at 4.7% remains more than twice the 2% midpoint of the Reserve Bank’s 1-3% target band, Orr told the New Zealand Economics Forum at Waikato University on Friday. Two-year ahead inflation expectations declined to a two-and-a-half-year low of 2.5% in the first quarter, the RBNZ said earlier this week.