Roger Partridge writes:
This week’s third-quarter inflation figure from Statistics NZ underlines what a mess the Minister of Finance and the Reserve Bank have made of monetary policy.
Inflation may have peaked at 7.3%. But talk from Reserve Bank governor Adrian Orr late last month that the bank’s ‘tightening cycle was ‘very mature’ was at best premature.
Tuesday’s announcement of Q3 inflation at 2.2% suggests inflationary expectations are now deeply embedded.
Most economists now predict inflation will remain well above the Reserve Bank’s 1-3% target for the foreseeable future. Kiwi households will endure a lot more pain before it is brought back under control.
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