RBNZ’s Silk says confident inflation will converge to 2% target midpoint in medium term

Reserve Bank of New Zealand Assistant Governor Silk:

• Remain confident that inflation will converge back to the 2% target midpoint in the medium term.
• We will continue to assess and respond to risks arising from broader economic conditions to manage inflation back to this level.
• Monetary policy has been sufficiently restrictive to ensure that broader financial conditions are supporting achievement of RBNZ inflation objectives.
• Over recent meetings, the committee has become increasingly confident that monetary policy has had the desired effect.

Silk speaking after the CPI data from NZ earlier. The data will keep the RBNZ on track to continue cutting rates. The next meeting is on November 27, and then it’s a nearly three month wait until the next one February 19. I suspect the cut on November 17 will be at least 50bp. At least …

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