Reserve Bank of New Zealand – risk of persistent inflation, rates restrictive for longer

RBNZ says:

• New Zealand’s financial system remains strong as the economy continues to adjust to the higher interest rate environment.

More of concern is this caveat, bolding mine:

• Global inflation is declining from elevated levels and financial markets have priced in lower policy rates over the next year.
• However, there remains a risk that new or persistent inflation pressures could mean global interest rates remain restrictive for longer, placing continued pressure on households, businesses and the financial system.

The full report can be accessed from here.

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