Read the first page of the Reserve Bank’s Monetary Policy Statement yesterday (the press release) and it is hard to find anything to quibble with. It was a strong statement, backing up another large OCR increase, and referencing a further increase in inflation pressures (and thus a revision up in the forecast track). One might wish they had gotten this serious back in November/December when the issues were already becoming stark and the upside risks high, instead of doing one 25 point increase in November and then heading off for a very long summer recess. But if they have got serious, and a bit worried, now, then better late than never.
And given where we are now – which is not a good place – if they manage to deliver core inflation next year at 2.6 per cent (as in the projections) I’d probably count that as quite a reasonable…
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Utopia, you are standing in it! 
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