RBNZ’s Conway: Inflation may be more sticky in the near term

Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway speech on inflation.

He’ll be following up with more at 5.30pm New Zealand time (0530 GMT, 0130 US Eastern time).

From his speech:

• Inflation may be more sticky in the near term
• But inflation could fall more quickly in the medium term, there is spare capacity emerging in the economy and this may help
• Looking ahead there are some remaining challenges in bringing inflation sustainably back to target
• Overall, a period of restrictive policy isnecessary to give confidence that inflation will return to target over a reasonable timeframe

This article was written by Eamonn Sheridan at www.forexlive.com.