Central Banks
RBNZ Says Rate-Cut Path Could Change on Price, Wage Setting
- Assistant Governor Karen Silk speaks in Bloomberg interview
- Policymakers still see inflationary pressure uncertainties
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New Zealand’s central bank wants to see wage and price setting continue to decline as it decides the appropriate pace of future interest rate cuts, Assistant Governor Karen Silk said.
“We continue to see that decline in price setting and wage setting behavior,” Silk said in an interview Friday in Wellington. “That’s really important. If that corrects itself more quickly, then obviously there’s an opportunity for us to think about cutting rates on a path that’s different. Likewise, it could do the reverse as well.”